US rigid packaging supplier Silgan Holdings (Stamford, Connecticut; www.silganholdings.com) has signed a definite agreement to acquire the Home, Health and Beauty business of WestRock (Norcross, Georgia / USA; www.westrock.com). The USD 1 bn deal still has to meet the necessary regulatory approval but is expected to be completed before the end of Q1 this year.

The business in question designs and manufactures dispensing systems and closures for the home care, lawns and garden, personal care, beauty, fragrance and healthcare markets. It operates 13 global plants, located in Spain, Brazil, the US, Germany, Poland, France, Italy, Mexico, China, The Netherlands and Canada. The unit posted sales of about USD 566m in the financial year ended 30 September 2016.

The divestiture will allow WestRock to focus on its core business: paper and packaging solutions. For Silgan, the purchase “significantly enhances the scope and breadth of our market leading closure franchise by bringing new capabilities in the highly engineered dispensing systems category,” said Silgan CEO Tony Allott. The acquisition will allow the group to expand its leadership in the global closures market, and is expected to yield operational cost synergies of USD 15m within 24 months following its closure.

Silgan's portfolio includes both metal and plastic containers, manufactured mostly at sites in North America, although the former are also produced in a number of plants in Europe and Asia. As for its closures business, the company operates plants in the Americas and Asia, as well as in Germany, Italy, Poland, Spain, the UK and the Czech Republic. Since its foundation in 1987, Silgan has acquired 34 businesses. With 88 global manufacturing sites, the company posted sales of USD 3.8 bn in 2015. Its customers include key consumer goods producers such as Campbell Soup, Bonduelle, Del Monte, Johnson & Johnson, Kraft Heinz, Nestle and Procter & Gamble, among others.