The US firm said the acquisition could provide cost synergy opportunities of up to $20m
US-based packaging supplier Silgan has acquired Albéa’s dispensing business for US$900m.
For the fiscal year ended 2018, the Albéa reported sales of approximately $383m.
Today, Albéa’s dispensing arm supplies engineered pumps, sprays and foam dispensing solutions, and operates a global network of ten plants across North America, Europe, South America and Asia.
“This proposed acquisition would significantly enhance the scope and breadth of our market leading closures franchise by bringing new products and capabilities in the highly engineered dispensing category, such as fine lotion dispensing solutions for skin care,” said Silgan’s Chairman and CEO Tony Allott.
“The Albéa dispensing business is a ‘hand-in-glove’ fit with our closures business.”
Allott also said the acquisition would allow Silgan to “expand relationships and product offerings with global customers” and provide cost synergy opportunities of $20m.
Silgan is expected to fund the purchase with a combination of cash and borrowings under the company’s senior secured credit facility.
The proposed acquisition is expected to close in the first half of 2020, subject to regulatory approval.