Silgan acquires metal ends producer in Italy
Silgan Holdings has announced that it has acquired Easytech Closures which manufactures and sells easy-open and sanitary metal ends used with metal containers primarily for food applications in Europe.
Easytech Closures operates a manufacturing facility in Fisciano, Italy and is projected to generate approximately €38 million ($45 million), in sales and approximately €6.6 million ($7.8 million), in adjusted EBITDA in 2021.
Adam Greenlee, president and CEO, Silgan Holdings, said: “Easytech is a leading manufacturer of a broad portfolio of metal ends, including easy-open metal ends, in the European market. We have had an excellent long-standing business relationship with Easytech and have great respect for its owners and management team. We are excited to now welcome Easytech to the Silgan team.
“This acquisition will allow our combined businesses to more effectively and efficiently utilise existing capacity for metal ends, reduce capital investment in the near term and accelerate completion of an on-going cost reduction program. Our acquisition of Easytech is yet another example of our strategy to build shareholder value through a disciplined capital allocation model. We now look forward to the successful integration of our three recent acquisitions.”
The purchase price was €31.5 million ($36.5 million), subject to customary adjustments including for net debt and working capital. Silgan expects to realise annual synergies as a result of the acquisition of approximately €4.1 million ($4.9 million), within 12 months primarily through procurement savings and increased capacity utilisation. It funded the purchase price with revolving loan borrowings under its senior secured credit facility.
The acquisition is expected to be slightly accretive to Silgan’s earnings in 2021, excluding the impact of required purchase accounting adjustments, with additional accretion expected in 2022.