GRAHAM PACKAGING
Agreement for takeover by Silgan Plastics / Merger would create new USD 6.2 bn packaging giant
 With the takeover by Silgan, the two companies will merge their respective portfolios, also in the field of blow moulded bottles (Photo: Silgan) |
This year could see the birth of a new big fish in the packaging business if the proposed merger agreement between Graham Packaging (York, Pennsylvania / USA; www.grahampackaging.com) and Silgan Holdings (Stamford, Connecticut / USA; www.silganholdings.com) goes through as expected. The two companies announced on 13 April that they had signed a definitive agreement for Silgan to acquire Graham Packaging for USD 4.1 bn, or USD 19.56 per share.
Expected to close in H2 2011, following regulatory and shareholder approval, the merger would create a new global food and beverage player, and a mammooth supplier of cans, closures and rigid plastic containers. Altogether, the merged business would have global workforce of 17,000 spread across 19 countries and 180 plants, with annual sales estimated at more than USD 6.2 bn.
Commenting on the proposed merge, Silgan CEO Tony Allott said the acquisition would allow Silgan to “significantly broaden its ability to serve these important markets with multiple rigid packaging options.” He added that Silgan expects the merge to result in operational cost synergies of USD 50m through reductions in administrative expenses, procurement savings and a more efficient manufacturing cost structure.
Silgan manufactures rigid plastic and metal packaging and caps at its 83 plants, of which only nine are located outside of North America. The company posted sales of USD 3.1 bn last year, with its Silgan Plastics business division – which manufactures bottles and containers for the cosmetics, healthcare, household, food, pharmaceutical and automotive sectors – contributing USD 589m. The company mostly processes PET, HDPE, PC and PP, with the plastics division operating solely in the US and Canada.
Silgan’s Closures business division operates 16 plants manufacturing metal and plastic caps in North and Latin America, Europe and Asia. The division’s plastics activities are centred in Niepolomice / Poland as well as the North American plants in Champaign and Athens. The group’s closures business last posed sales of USD 619m.
Graham Packaging owns 98 plants throughout the world. In financial 2010, the company generated USD 2.5 bn in profits – see Plasteurope.com of 23.02.2011.
Expected to close in H2 2011, following regulatory and shareholder approval, the merger would create a new global food and beverage player, and a mammooth supplier of cans, closures and rigid plastic containers. Altogether, the merged business would have global workforce of 17,000 spread across 19 countries and 180 plants, with annual sales estimated at more than USD 6.2 bn.
Commenting on the proposed merge, Silgan CEO Tony Allott said the acquisition would allow Silgan to “significantly broaden its ability to serve these important markets with multiple rigid packaging options.” He added that Silgan expects the merge to result in operational cost synergies of USD 50m through reductions in administrative expenses, procurement savings and a more efficient manufacturing cost structure.
Silgan manufactures rigid plastic and metal packaging and caps at its 83 plants, of which only nine are located outside of North America. The company posted sales of USD 3.1 bn last year, with its Silgan Plastics business division – which manufactures bottles and containers for the cosmetics, healthcare, household, food, pharmaceutical and automotive sectors – contributing USD 589m. The company mostly processes PET, HDPE, PC and PP, with the plastics division operating solely in the US and Canada.
Silgan’s Closures business division operates 16 plants manufacturing metal and plastic caps in North and Latin America, Europe and Asia. The division’s plastics activities are centred in Niepolomice / Poland as well as the North American plants in Champaign and Athens. The group’s closures business last posed sales of USD 619m.
Graham Packaging owns 98 plants throughout the world. In financial 2010, the company generated USD 2.5 bn in profits – see Plasteurope.com of 23.02.2011.
15.04.2011 Plasteurope.com [219167-0]
Published on 15.04.2011
German version of this article...