Silgan Announces Agreement to Acquire Rexam's Plastic Thermoformed Food Business for $250M

Silgan Holdings Inc.

announced today that it has entered into a definitive purchase agreement to purchase Rexam PLC's plastic thermoformed food business. This business, with anticipated sales of approximately $100 million in 2012, provides thermoformed packaging solutions such as retortable bowls and barrier trays to many of the world's leading packaged food and ready-meal companies. The purchase price for this transaction is $250 million and is expected to be neutral to Silgan's 2012 earnings primarily due to the initial write-up of inventory required for accounting purposes, and modestly accretive to earnings in 2013 based on current growth expectations. The transaction is expected to close in the third quarter of 2012, subject to certain customary conditions and regulatory approvals, and Silgan expects to fund the purchase price from cash on hand.