US-based supplier of rigid packaging Silgan Holdings is purchasing Portola Packaging, a manufacturer of plastic closures, for US$266 million. Portola, with sales of approximately US$200 million in 2012, operates eight facilities in North America and Europe.

“We believe that the acquisition of Portola broadens our global closure franchise,” said Bob Lewis, Executive Vice President and Chief Financial Officer. “Portola has a strong reputation as an innovator in closure design and operational leadership. 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. In addition, we are excited about the opportunity to expand our relatively small European plastic closure presence through Portola’s manufacturing facilities in the UK and Czech Republic,” said Lewis.

The acquisition is expected to be slightly accretive to earnings initially, excluding the impact of the required purchase accounting write-up of inventory, becoming more accretive as synergies are phased in over the next 18 months following the closing. The transaction is expected to close as early as September 2013, subject to certain customary conditions and regulatory approvals, and Silgan expects to fund the purchase price for this acquisition from a combination of cash on hand and borrowings under the Company’s senior secured credit facility.

Silgan Holdings is a leading supplier of rigid packaging for shelf-stable food and other consumer goods products with annual net sales of approximately US$3.6 billion in 2012. Silgan operates 81 manufacturing facilities in North and South America, Europe and Asia. Silgan is a leading supplier of metal containers in North America and Europe, and a leading worldwide supplier of metal, composite and plastic vacuum closures for food and beverage products. In addition, it also supplies plastic containers for shelf-stable food and personal care products in North America.