Silgan Holdings Inc SLGN

Silgan Holdings: Acquisition of Weener Packaging Bolsters Dispensing and Closures Portfolio

Silgan announced on July 24 that it had reached an agreement to acquire Weener Packaging, a large European producer of plastic packaging products. Silgan agreed to acquire Weener Packaging for EUR 838 million, equivalent to roughly $910 million. Silgan will finance the deal with cash on hand and its credit facility. Barring any issues, management expects the deal to close in the fourth quarter of 2024. The geographic diversity of Silgan and Weener Packaging’s operations gives us greater confidence that the deal will receive the necessary regulatory approval. We think the deal is largely value neutral, and as such, we are maintaining our $41 per share fair value estimate.