Silgan Holdings Acquires Gateway Plastics For $485M

Sustainable rigid packaging solutions provider Silgan Holdings Inc 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.