Silgan expands food can business with purchase of Vogel & Noot
Silgan Holdings, a leading supplier of food cans, has announced that it is buying Vogel & Noot Holding AG’s food can business for €250 million ($335m), subject to adjustment of the net debt and financial performance of the business.
Vogel & Noot, headquartered in Vienna, Austria, currently operates 12 food can manufacturing facilities throughout central and Eastern Europe. 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,” says 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.”
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.
Silgan Holdings is a leading manufacturer of consumer goods packaging products with annual net sales of approximately $3.1 billion in 2009. Silgan operates 68 manufacturing facilities in North and South America, Europe and Asia. In North America, Silgan is the largest supplier of metal containers for food products and a leading supplier of plastic containers for personal care products.