- Sustainable rigid packaging solutions provider Silgan Holdings Inc (NASDAQ:SLGN) has acquired Gateway Plastics for $485 million.
- Gateway Plastics manufactures and sells dispensing closures and integrated dispensing packaging solutions, primarily for the food and beverage markets.
- It operates a manufacturing facility in Mequon, Wisconsin, and is projected to generate about $150 million in sales and about $46 million in adjusted EBITDA for 2021.
- The acquisition further expands Silgan's product offering in Dispensing and Specialty Closures.
- Silgan expects the acquisition to be slightly accretive to its earnings in 2021, excluding the impact of required purchase accounting adjustments, with additional accretion in 2022.
- Silgan funded the purchase price with revolving loan borrowings under its senior secured credit facility.
- Silgan held $164.8 million in cash and equivalents as of June 30, 2021.
- Price Action: SLGN shares closed higher by 0.66% at $39.72 on Monday.
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