Consumer goods packaging company Silgan Holdings, based in Stamford, has entered into a definitive agreement with WestRock to acquire its specialty closures and dispensing systems business for approximately $1.025 billion in cash, plus the assumption of approximately $25 million in foreign pension liability.
WestRock, a corrugated packaging company based in Norcross, Georgia, expects to receive net after-tax proceeds from the divestiture of approximately $1 billion.
Both companies expect to close the transaction, subject to government and regulatory approvals, by March 31.
The acquisition of WestRock’s dispensing business will enable Silgan to expand its position in the global closure market to include highly engineered dispensing systems for food, beverage, health care, garden, home and beauty products, in addition to Silgan’s current offerings in hot-fill vacuum closures and cold-fill closures, according to press release.
Silgan expects to realize operational cost synergies of $15 million within 24 months of closing the deal, primarily through reductions in general and administrative expenses, procurement savings, and manufacturing efficiencies.