Silgan completes acquisition of Albéa’s dispensing business

Canmaker and rigid packaging specialist Silgan has completed the US$900 million acquisition of Albéa Group’s dispensing business, which supplies pumps, sprayers and foam dispensing systems to customers in the beauty and personal care markets.

Albéa operates a global network of ten plants in North America, Europe, South America and Asia with sales of about US$395m in 2019.

Silgan funded the purchase through borrowings under its senior secured credit facility, including a $900m delayed draw term loan.

This acquisition is expected to improve Silgan’s profits in 2020 after accounting for the impact of the coronavirus pandemic on the beauty and personal care markets.

Silgan operates 110 manufacturing plants in North and South America, Europe and Asia and would have had sales of about $4.9bn in 2019 if Albéa’s dispensing business was also included.

Silgan is expanding its closure, ends and dispenser business even as it plans to close as many as six canmaking plants amid declining demand for food cans. It recently bought Cobra, a manufacturer of plastic aerosol caps, shortly after posting a 1 per cent drop in can volumes for 2019.

However, in April 2020 Silgan reported that its production of food cans grew by 8 per cent in the first quarter, driving profit to a record high. Segment profit jumped 22 per cent to $47.5m and margins increased from 7.7 to 9.3 per cent.