The US-based packaging giant confirmed yesterday it had concluded the deal to take over the food can business of Austrian company Vogel & Noot for €260m (US$359m) – a slightly higher price than previously announced because of “preliminary post-closing adjustments”, said the company. This figure also includes net indebt of around €31.7m.
The buyout, announced last December, will see it add the Vienna-based firm’s 12 can manufacturing plants throughout CEE. Silgan said a further three plants were due to come on-stream in the near future.
“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," said company president and CEO Tony Allott.
He added: “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.”
The Austrian company will continue to operate from the country's capital city but under the name Silgan Metal Packaging. It manufactures two and three-piece cans, with regular, easy-openng and peelable ends. It also produces what it describes as food canisters.
The acquisition is expected to be “modestly accretive” in 2011 but would dilute first quarter earnings, said Silgan.
The firm also announced it had completed the purchase of the twist-off closure business of DGS S.A in Włocławek, Poland for €15.8m. According the company’s website, this unit specialises in closures for preserves and juices.
DGS said it exports a significant percentage its products to Russia, Ukraine, Belarus, Kazakhstan, Western Europe and the United States, as well as supplying wine producers in Australia and New Zealand.
The company will operate as part of the Silgan White Cap Europe business headquartered in Hannover, Germany and will be integrated into its existing metal closure operations.
The Polish buyout is expected to be neutral to earnings in 2011 after giving effect to the write-up of inventories, said the US company.
Silgan, headquartered in Connecticut, said it posted sales of US$3.1bn in 2010 and operates 83 manufacturing facilities in North and South America, Europe and Asia. It claims to be the largest supplier of metal containers to the food industry in the US and Canada.