Benzinga | Sep 21, 2021 06:39AM EDT

Silgan Holdings Acquires Gateway Plastics For $485M

* Sustainable rigid packaging solutions provider Silgan Holdings Inc (NASDAQ:SLGN) has acquired Gateway Plastics for $485 million.

* Gateway Plastics manufactures and sells dispensing closures and integrated dispensing packaging solutions, primarily for the food and beverage markets.

* It operates a manufacturing facility in Mequon, Wisconsin, and is projected to generate about $150 million in sales and about $46 million in adjusted EBITDA for 2021.

* The acquisition further expands Silgan's product offering in Dispensing and Specialty Closures.

* Silgan expects the acquisition to be slightly accretive to its earnings in 2021, excluding the impact of required purchase accounting adjustments, with additional accretion in 2022.

* Silgan funded the purchase price with revolving loan borrowings under its senior secured credit facility.

* Silgan held $164.8 million in cash and equivalents as of June 30, 2021.

* Price Action: SLGN shares closed higher by 0.66% at $39.72 on Monday.