Mar 2 2011
Silgan Holdings Inc. (NASDAQ:SLGN) today announced that it has completed its acquisition of Vogel & Noot Holding AG's metal can business.
The Vogel & Noot business will operate under the name Silgan Metal Packaging and will continue to be headquartered in Vienna, Austria. Silgan Metal Packaging will operate 12 can manufacturing plants throughout Central and Eastern Europe, with three additional plants to become operational in the near term.
The purchase price for the business (including preliminary post-closing adjustments) was EUR 260 million (or approximately $358.8 million), which includes assumed net indebtedness of approximately EUR 31.7 million (or approximately $43.7 million). The Company funded the purchase price for this acquisition through Euro denominated revolving loan borrowings under its senior secured credit facility. The Company expects the business to be modestly accretive to earnings for the full year 2011, but it is likely to be dilutive to earnings in the first quarter of 2011 principally due to the initial write-up of inventory required for accounting purposes. The Company's current earnings estimates include the impact of this acquired business.
The Company also announced today that it completed its acquisition of the twist-off closure business of DGS S.A. in Poland. This business, which was acquired for EUR 15.8 million (or approximately $21.7 million), will operate as part of the Silgan White Cap Europe business headquartered in Hannover, Germany and will be integrated into the Company's existing metal closure operations. After giving effect to the write-up of inventories, this business is expected to be neutral to earnings in 2011.