Dec 15 2010
Silgan Holdings Inc. (Nasdaq: SLGN), a leading supplier of consumer goods packaging products, today announced that is has entered into a definitive purchase agreement with Vogel & Noot Holding AG to purchase its food can business. Vogel & Noot, headquartered in Vienna, Austria, currently operates 12 food can manufacturing facilities throughout Central and Eastern Europe and anticipates sales of approximately EUR 250 million (or approximately $335.0 million at current exchange rates) in 2010.
The closing under the purchase agreement is contingent upon satisfactory completion of certain conditions and regulatory approvals.
"As a leader in the metal food can business, we are excited about the opportunity to expand the Silgan franchise as we partner with our global customers to support their growth in the Central and developing Eastern European markets," said Tony Allott, President and CEO of Silgan. "The Vogel & Noot team has a proven track record of successful growth in this diverse geographic area, and we are pleased to be able to combine efforts with them to continue to enhance our metal food can position in these important markets and around the world. With plants currently operational in Germany, Austria, Poland, Greece, Macedonia, Belarus, Slovakia, and Slovenia and several new locations scheduled to come on line in the near term, the business is uniquely positioned to meet the growing needs of these markets and our global customers," concluded Mr. Allott.
The purchase price for this transaction is EUR 250 million (approximately $335.0 million), subject to adjustment for the net debt and financial performance of the business, or approximately 6.5 times the projected EBITDA of the business, after giving effect to the expected future earnings of the locations under development. The transaction is expected to be modestly accretive to its 2011 earnings. The transaction is expected to close in the first quarter of 2011, subject to certain closing conditions and regulatory approvals, and Silgan expects to fund the purchase price from a combination of cash on hand and euro denominated revolving loan borrowings under its senior secured credit facility.