Silgan Holdings Inc., a supplier of sustainable rigid packaging solutions for consumer goods products, has acquired Unicep Packaging.
 
As a Specialty Contract Manufacturer and Developer (SCMD) solutions provider, Unicep develops, formulates, manufactures and sells precision dosing dispensing packaging solutions, such as diagnostic test components, oral care applications and skin care products, primarily for the health care, diagnostics, animal health, oral care and personal care markets. It operates two manufacturing facilities located in Spokane, Washington and Sandpoint, Idaho and is projected to generate approximately $45 million in sales and approximately $18.3 million in adjusted EBITDA for 2021.
 
“Unicep is a clear leader in the rapid development and manufacturing of differentiated precision dosing dispensing packaging solutions for applications in health care, diagnostics and personal care. This acquisition further expands and extends our precision dosing capabilities and comprehensive product offering into new and existing markets,” said Adam Greenlee, president and CEO.
 
“The Unicep team has combined a high-touch commercial philosophy with a proprietary operating platform to excel at meeting the unique requirements of their customers. The business broadens our exposure to health care and Point-of-Care diagnostics markets, has existing capacity for continued growth, complements our global Dispensing and Specialty Closures franchise and is scalable across our global footprint. We believe the acquisition of Unicep represents another example of our disciplined capital allocation model that has allowed Silgan to consistently create long-term shareholder value, and we look forward to welcoming our newest employees to the Silgan team,” concluded Mr. Greenlee.
 
The purchase price for this acquisition was $237 million, subject to customary adjustments including for net debt and working capital. With this acquisition, Silgan expects to realize tax benefits having a net present value of approximately $35 million as a result of the step-up in tax basis of the assets from this acquisition. Silgan funded the purchase price for this acquisition with revolving loan borrowings under its senior secured credit facility.
 
This acquisition is expected to be slightly accretive to the Company’s earnings in 2021, excluding the impact of required purchase accounting adjustments, with additional accretion expected in 2022.
 

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