Silgan Completes Acquisition of Rexam's Plastic Thermoformed Food Business
Silgan Holdings (Nasdaq: SLGN), a leading supplier of rigid packaging for consumer goods products, today announced that it has completed its acquisition of Rexam PLC's plastic thermoformed food business.
This business will be reported as part of the plastic container segment and will operate under the name Silgan Plastic Food Containers. With anticipated 2012 revenues of $100 million, this business produces both barrier and non-barrier bowls and trays for the shelf-stable food markets.
The purchase price for this business (including preliminary post-closing adjustments) was $248.1 million. The Company funded the purchase price for this acquisition from cash on hand. The Company expects this business to be neutral to earnings in 2012 principally due to the initial inventory write-up required for accounting purposes, but expects this business to be modestly accretive to earnings for the full year 2013.
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