Silgan Holdings will acquire the US-based plastic closures manufacturer Portola Packaging in a deal worth $266m.
Silgan executive vice president and chief financial officer Bob Lewis said that the acquisition complements the company's existing lid business, while providing a platform to serve the market needs of its customers.
"In addition, we are excited about the opportunity to expand our relatively small European plastic closure presence through Portola's manufacturing facilities in the United Kingdom and Czech Republic," Lewis added.
Silgan hopes to fund the purchase price for the acquisition from a combination of cash and borrowings under the senior secured credit facility of the company.
Silgan supplies packaging for shelf-stable food and other consumer goods products. It had annual net sales of approximately $3.6bn in 2012.
With 81 manufacturing facilities in North and South America, Europe and Asia, the company supplies metal containers in North America and Europe.
Portola Packaging, which operates eight facilities in North America and Europe, reported 2012 sales of approximately $200m.
Image: Portola's acquisition will expand Silgan's global closure franchise. Photo: courtesy of foto76 / FreeDigitalPhotos.net.