Silgan Closes On Nestle Purina Steel-Can Buyout
STAMFORD, Conn. (AP) — Packaging-products supplier Silgan Holdings Inc. has closed on its $25 million purchase of Nestle Purina PetCare Co.'s steel can-making assets for its pet food products.
"This transaction enhances our market-leading position in food cans, allowing us to further leverage our broad manufacturing platform to continue to provide competitive advantage to customers such as Nestlé," Silgan President and CEO Tony Allott said in a statement.
Silgan said the acquisition is already accounted for in its earnings outlook because it started supplying Nestle Purina with cans earlier this year.
Silgan said Tuesday that it also has a long-term supply deal with Nestle Purina PetCare Co., but did not provide further details on the agreement.
Shares of Silgan, based in Stamford, Conn., fell 66 cents to $36.19 in morning trading. Over the past year, the stock has traded between $30.68 and $46.79.