Silgan Holdings, a US-based supplier of rigid packaging for shelf-stable food and other consumer goods products, has agreed to acquire Portola Packaging, a manufacturer of plastic closures, for $266m.
Portola Packaging operates eight facilities in North America and Europe and reported sales of approximately $200m in 2012.
Silgan Holdings executive vice president and chief financial officer Bob Lewis said that the acquisition of Portola broadens the company's global closure franchise.
"Portola has a strong reputation as an innovator in closure design and operational leadership," Lewis added.
"As a result, we believe this acquisition will be highly synergistic with our existing closure business, while providing a broader platform to service our customers' market needs."
Silgan plans to finance the acquisition through a combination of cash on hand and borrowings under the company's senior secured credit facility.
The transaction, which is subject to certain customary conditions and regulatory approvals, is expected to be completed as early as September 2013.
Silgan expects the acquisition to be slightly accretive to earnings initially and become more accretive as synergies are phased in over the next eighteen months following the closing.
