The deal will enable Silgan to expand easy-open metal end manufacturing capabilities, and allow the combined businesses to use the existing capacity for metal ends more effectively and efficiently
Rigid packaging solutions provider Silgan Holdings has acquired Italian company Easytech Closures for €31.5m ($36.5m).
Easytech is engaged in the manufacturing and marketing of easy-open and sanitary metal ends used with metal containers primarily for food applications in Europe.
With a manufacturing facility in Fisciano, the company is expected to generate around €38m or $45m in sales and around €6.6m or $7.8m in adjusted EBITDA this year.
Silgan Holdings president and CEO Adam Greenlee said: “This acquisition will allow our combined businesses to more effectively and efficiently utilise existing capacity for metal ends, reduce capital investment in the near term and accelerate completion of an ongoing cost reduction programme.
“Our acquisition of Easytech is yet another example of our strategy to build shareholder value through a disciplined capital allocation model. We now look forward to the successful integration of our three recent acquisitions.”
As a result of the acquisition, Silgan anticipates realising annual synergies of around €4.1m or about $4.9m.
The company has funded the purchase price for the acquisition with revolving loan borrowings under its senior secured credit facility.
With 112 manufacturing facilities in North and South America, Europe and Asia, Silgan supplies dispensing and speciality closures for food, beverage, health care, garden, home, personal care and beauty products.
The company also supplies metal containers in North America and Europe for food and general line products, as well as custom containers for shelf-stable food and personal care products in North America.