US-based rigid packaging supplier Silgan Holdings has bought Gateway Plastics, a manufacturer of dispensing closures and integrated dispensing packaging solutions, for $485m.

Gateway Plastics supplies solutions to consumer goods companies, with a focus on food and beverage markets.

The company’s product portfolio includes a combined container and closure, and fully recyclable dispensing beverage pods.

Gateway Plastics is expected to generate around $150m in sales and $46m in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) this year.

The company operates an advanced manufacturing facility in Mequon, Wisconsin.

Silgan Holdings president and CEO Adam Greenlee said: “The acquisition of Gateway is the most recent example of Silgan deploying our disciplined capital allocation model to create shareholder value.

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“We are excited to add the Gateway team and business to our global Dispensing and Speciality Closures franchise.

“Gateway has existing capacity for growth as it is very well capitalised with state-of-the-art equipment and market-leading capabilities and, like Silgan, maintains a relentless focus on meeting the unique needs of its customers.”

With this acquisition, Silgan expects to realise tax benefits with a net present value of around $90m, as well as around $2m in annual synergies over the next year mainly via procurement savings.

The deal’s completion is subject to customary adjustments, including adjustments for net debt and working capital.

Silgan operates 110 manufacturing facilities in North and South America, Europe and Asia. The company registered annual net sales of around $4.9bn last year.

Greenlee added: “This acquisition further expands our comprehensive product offering in Dispensing and Speciality Closures and provides further growth opportunities with many of our existing and shared customers.

“In addition, we believe Gateway’s advanced automation platform can be leveraged across much of Silgan’s manufacturing footprint.”

Last June, Silgan acquired the dispensing business of cosmetic packaging manufacturer Albéa for $900m.