Sustainable rigid packaging solutions provider Silgan has completed the acquisition of the dispensing business of cosmetic packaging manufacturer Albéa.
The $900m deal is subjected to adjustments drawn in the purchase agreement and is expected to be “modestly accretive to the company’s earnings in 2020”.
It is funded through term and revolving loan borrowings under the company’s senior secured credit facility, as well as a $900m delayed draw term loan.
Albéa’s dispensing operation is a global supplier of products and solutions such as engineered pumps, sprayers and foam dispensing. They are supplied to consumer goods product companies across beauty and personal care markets.
The company operates ten plants across North America, Europe, South America and Asia.
Albéa president and CEO François Luscan said: “Albéa will now focus its energy and resources on its legacy Tubes, Cosmetic Rigid Packaging and Beauty Solutions businesses.
“Each business will leverage its unique value proposition, including product offering, industrial footprint, business model and key assets – as well as Albéa’s distinctive culture and strong commitment to Corporate Social Responsibility.”
Following this acquisition, Silgan expects to realise operational cost synergies of $20m on an annual run rate basis within 18 months. It will be primarily via procurement savings, manufacturing efficiencies and general and administrative expenses reduction.
Silgan supplies sustainable rigid packaging solutions for consumer goods products with 110 manufacturing facilities in North and South America, Europe and Asia.
In February this year, Silgan Dispensing launched two new packaging products at ADF&PCD 2020.