Silgan Acquires Unicep Packaging For $237M

Silgan Holdings Inc SLGN has acquired Unicep Packaging for $237 million, subject to customary adjustments, including net debt and working capital.
Unicep is a Specialty Contract Manufacturer and Developer (SCMD) solutions provider. Unicep is focussed on precision dosing dispensing packaging solutions, such as diagnostic test components, oral care applications, and skincare products.
Unicep operates two manufacturing facilities in Spokane, Washington, and Sandpoint, Idaho, and is projected to generate about $45 million in sales and about $18.3 million in adjusted EBITDA for 2021.
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 has funded the purchase price for the deal with revolving loan borrowings under its senior secured credit facility. It held $164.8 million in cash and equivalents as of June 30, 2021.
Also Read: Silgan Holdings Acquires Gateway Plastics For $485M
Price Action: SLGN shares closed lower by 0.98% at $38.36 on Thursday.