Silgan Holdings, a prominent supplier of sustainable rigid packaging solutions, has made a bold move in the packaging industry by announcing its intention to acquire Weener Plastics Holdings. This strategic decision, valued at €838 million, marks a significant expansion of Silgan's global Dispensing and Specialty Closures franchise. The acquisition aligns with Silgan's ongoing strategy to strengthen its market position and create value for shareholders through disciplined capital allocation.
Weener Plastics, the target of this acquisition, is a leading producer of differentiated dispensing solutions for personal care, food, and healthcare products. With a global network of 19 facilities, primarily located in Europe and the Americas, Weener brings to the table a workforce of approximately 4,000 employees and proprietary manufacturing technologies, including significant clean room capabilities. This acquisition is set to complement Silgan's existing dispensing business, enhancing its product offerings and technological capabilities.
Adam Greenlee, President and CEO of Silgan, emphasized the strategic importance of this acquisition. He highlighted Weener's innovative product offering, advanced manufacturing technologies, efficient operating footprint, strong customer relationships, and presence in growing consumer markets as key factors that complement Silgan's existing operations. Greenlee expressed confidence that this move would position Silgan as the dispensing partner of choice in the market, maintaining its focus on excellence and meeting unique customer needs.
The financial aspects of this acquisition are equally impressive. For the twelve months ended May 31, 2024, Weener generated sales of approximately €450 million and adjusted EBITDA of €96 million. Silgan anticipates realizing operational cost synergies of about €20 million within 18 months following the closing of the proposed acquisition. These synergies are expected to be achieved through a combination of procurement savings, manufacturing efficiencies, and other operational synergies. Importantly, the acquisition is projected to be accretive to adjusted earnings per share in 2025.
The proposed acquisition is scheduled to close in the fourth quarter of 2024, subject to applicable regulatory approvals and certain other customary conditions. Silgan plans to fund the purchase price through a combination of cash on hand and borrowings under its senior secured credit facility. This funding strategy demonstrates Silgan's financial flexibility and confidence in the value this acquisition will bring to the company.
