Silgan acquisition gives it cosmetic packaging capabilities
Connecticut-based Silgan, which operates manufacturing facilities in North and South America, Europe and Asia, has entered an agreement to buy the Portola business, which is specialized in plastic closures and has manufacturing facilities in both North America and Europe.
Illinois-based Portola is specialized in solutions for a wide variety of consumer goods industries for just the food and beverage industry, but crucially it has a broader manufacturing footprint in Europe, which Silgan is hoping it can tap into to expand its business there.
Acquisition is expected to bring about synergies
Although the terms of the acquisition and the price were not revealed, Silgan is said to be paying $266m for the business. which had a turnover of $200m in 2012 and should be accretive in the next financial year, while synergies should also help to boost the bottom line.
“We believe that the acquisition of Portola broadens our global closure franchise,” said Bob Lewis, executive vice president and chief financial officer.
“Portola has a strong reputation as an innovator in closure design and operational leadership. As a result, we believe this acquisition will be highly synergistic with our existing closure business, while providing a broader platform to service our customers’market needs.”
Increasing the footprint in Europe
The Silgan closures business is incorporated under its Silgan Plastics division, which is active in cosmetics and personal care segment as well as food and beverage, supplying items custom and injection molded closures.
“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,” said Lewis.