US-based rigid packaging supplier Silgan has completed the acquisition of WestRock Company’s specialty closures and dispensing systems business for $1.025bn.
The business is engaged in supplying triggers, pumps, sprayers and dispensing closure solutions.
Operating 13 manufacturing facilities located across North America, Europe, South America and Asia, the business serves major consumer goods product companies in the home, health and beauty markets.
The firm said the acquisition is part of its plan to significantly boost its closure franchise by providing new capabilities in the highly engineered dispensing systems category.
Silgan president and CEO Tony Allott earlier said: “This acquisition allows us to further build relationships with common global customers, provides significant opportunities for cost synergies, creates an incremental platform for growth and strongly enhances our free cash flow.”
Silgan financed the acquisition through term and revolving loan borrowings under its senior secured credit facility. This included a $800m delayed draw term loan.
The acquisition is expected to realize operational cost synergies of $15m for Silgan within 24 months. This is primarily achieved through reductions in general and administrative expenses, procurement savings and manufacturing efficiencies, Silgan said.
Employing 39,000 people, WestRock provides differentiated paper and packaging solutions. It has operations in North America, South America, Europe and Asia.
Silgan provides rigid packaging for consumer goods products as well as metal and plastic closures and dispensing systems for food, beverage, health care, garden, home and beauty products.
The company also supplies plastic containers for shelf-stable food and personal care products in North America.