Benzinga | Oct 1, 2021 08:07AM EDT

Silgan Acquires Unicep Packaging For $237M

* Silgan Holdings Inc (NASDAQ:SLGN) has acquired Unicep Packaging for $237 million, subject to customary adjustments, including net debt and working capital.

* Unicep is a Specialty Contract Manufacturer and Developer (SCMD) solutions provider. Unicep is focussed on precision dosing dispensing packaging solutions, such as diagnostic test components, oral care applications, and skincare products.

* Unicep operates two manufacturing facilities in Spokane, Washington, and Sandpoint, Idaho, and is projected to generate about $45 million in sales and about $18.3 million in adjusted EBITDA for 2021.

* 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 has funded the purchase price for the deal with revolving loan borrowings under its senior secured credit facility. It held $164.8 million in cash and equivalents as of June 30, 2021.

* Also Read: Silgan Holdings Acquires Gateway Plastics For $485M

* Price Action: SLGN shares closed lower by 0.98% at $38.36 on Thursday.