Rigid packaging supplier Silgan has signed a definitive agreement to purchase Portola Packaging, a plastic closures manufacturer in the US for $266m.
Silgan executive vice president and chief financial officer Bob Lewis said the acquisition of Portola, an innovator in closure design, will broaden the company's global closure franchise.
"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," Lewis added.
Silgan, which operates 81 manufacturing facilities in North and South America, Europe and Asia, will also get an opportunity to expand its relatively small European plastic closure presence through Portola's manufacturing facilities in the UK as well as Czech Republic.
According to Silgan, the deal is subject to certain customary conditions and regulatory approvals, and is expected to close as early as September 2013.
Portola, which reported sales of about $200m in 2012, operates eight facilities in North America and Europe.
