The U.S. packaging supplier headquartered in Stamford, Connecticut, offers 900 million dollars to acquire the dispensing business of Albéa, a French company specializing in packaging solutions for the beauty and personal care markets.
Expected to close in the first half of 2020, the proposed acquisition is subject to the receipt of applicable regulatory approvals and the satisfaction of certain customary conditions, including completion of the required works councils consultations.
Albéa’s dispensing business generated sales of approximately USD 383 million for the fiscal year ended 2018. It operates a global network of 10 plants across North America, Europe, South America and Asia.
With this acquisition, Silgan would expand its position in the dispensing markets to include new foam pumps, fine mist pumps, lotion pumps, samplers and fragrance caps and closures for personal care and beauty products.
“This proposed acquisition would significantly enhance the scope and breadth of our market leading closures franchise by bringing new products and capabilities in the highly engineered dispensing category, such as fine lotion dispensing solutions for skin care,” said Tony Allott, Silgan Holdings Chairman and CEO, in a statement.
Silgan expects to fund the purchase price for this proposed acquisition with a combination of cash on hand and borrowings.
“If confirmed, this promising combination would leverage the two group’s complementary business strategies and markets, with Silgan Closure’s segment focused on food, beverage, home care and personal care and Albéa Dispensing Systems focused on beauty and skin care. At the same time, it would allow Albéa to focus its strategic ambitions on our Tubes, Cosmetic Rigid Packaging and Beauty Solutions businesses, where we hold leadership positions,” added Cécile Thuil, Vice-President Communications at Albéa.