Silgan acquires Gateway Plastics for $485m
Silgan Holdings, supplier of consumer goods packaging, has acquired Gateway Plastics for $485 million.
Gateway Plastics manufactures and sells dispensing closures and integrated dispensing packaging solutions. It has a large manufacturing facility in Mequon, Wisconsin, USA and is projected to generate approximately $150 million in sales and approximately $46 million in adjusted EBITDA for 2021.
Adam Greenlee, president and CEO at Sildan, said: “The acquisition of Gateway is the most recent example of Silgan deploying our disciplined capital allocation model to create shareholder value. We are excited to add the Gateway team and business to our global Dispensing and Specialty Closures franchise.”
Silgan expects tax benefits of around $90 million from the acquisition as well as annual synergies as a result of this acquisition of approximately $2 million within 12 months primarily through procurement savings.