Silgan to acquire Albea’s dispensing business
The $900-million acquisition, which will expand Silgan's rigid packaging business, is expected to close in the first half of 2020.
Silgan Holdings Inc., a supplier of rigid packaging for consumer goods products, has signed a binding offer to acquire Albea’s dispensing business for US$900 million.
Headquartered in Paris, France, Albea supplies engineered pumps, sprayers and foam dispensing solutions to major branded consumer goods product companies in the beauty and personal care markets. The company has 10 plants across North America, Europe, South America, and Asia. For the fiscal year ended 2018, the business generated sales of approximately US$383 million.
The proposed acquisition is expected to close in the first half of 2020.
“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,” Tony Allott, Silgan’s chairman and CEO, said in a statement. “The Albea dispensing business is a ‘hand-in-glove’ fit with our closures business….[and] this proposed acquisition would allow us to expand relationships and product offerings with global customers, bring new customer relationships and provide cost synergy opportunities of $20 million.”
Silgan is headquartered in Stamford, Conn.