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October 1, 2021

Silgan buys contract manufacturer Unicep Packaging for $237m

Unicep is expected to generate around $45m in sales for the full year.

US-based rigid packaging supplier Silgan Holdings has purchased speciality contract manufacturer and developer Unicep Packaging for $237m.

The transaction is intended to expand Silgan’s precision dosing capabilities and product offerings for both new and existing markets.

Unicep Packaging specialises in precision dosing dispensing packaging solutions for various markets, including health care, diagnostics, animal health, oral care and personal care.

The company has two manufacturing facilities in Spokane, Washington, and Sandpoint, Idaho.

Unicep is expected to generate sales of almost $45m and around $18.3m in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) this year.

Silgan president and CEO Adam Greenlee said: “Unicep is a clear leader in the rapid development and manufacturing of differentiated precision dosing dispensing packaging solutions for applications in health care, diagnostics and personal care.

“The Unicep team has combined a high-touch commercial philosophy with a proprietary operating platform to excel in meeting the unique requirements of their customers.

“The business broadens our exposure to healthcare and point-of-care diagnostics markets, has existing capacity for continued growth, complements our global Dispensing and Speciality Closures franchise and is scalable across our global footprint.

“We believe the acquisition of Unicep represents another example of our disciplined capital allocation model that has allowed Silgan to consistently create long-term shareholder value, and we look forward to welcoming our newest employees to the Silgan team.”

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

Silgan expects to realise tax benefits with a net present value of around $35m through this acquisition.

Last month, the company bought Gateway Plastics, a manufacturer of dispensing closures and integrated dispensing packaging solutions, for $485m.

Gateway Plastics supplies solutions to consumer goods companies, focusing primarily on food and beverage markets.

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