Silgan to acquire France’s Albea’s dispensing business for $900 million

Silgan to acquire France’s Albea’s dispensing business for $900 million

Silgan Holdings Inc. shares slid 2.9% in premarket trade Monday, after the maker of rigid packaging for consumer goods products said it has signed a binding deal to acquire Albea’s dispensing business for $900 million. Albea, a French company, supplies engineered pumps, sprayers and foam dispensers for branded consumer goods companies in the beauty and personal care markets. The business has 10 plants based in North America, Europe, South America and Asia and generated sales of about $383 million in fiscal 2018. The deal is expected to close in the first half. “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,” Silgan Chief Executive Tony Allott said in a statement. Shares of Stamford, Conn.-based Silgan have gained 18% in the last 12 months, while the S&P 500 has gained 24%.

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