Connecticut-based company buys Portola, employer of 100 in Kingsport
Aug 16, 2013 at 3:48 PM
KINGSPORT - Stamford, Conn-based Silgan Holdings Inc., a supplier of rigid packaging for shelf-stable food and other consumer goods products, has announced an agreement to purchase Portola Packaging, Inc., a manufacturer of plastic closures.
Portola, with sales of approximately $200 million in 2012, operates eight facilities in North America and Europe, including one in Kingsport. The company is based in Naperville, Ill.
“We believe that the acquisition of Portola broadens our global closure franchise,” Bob Lewis, Silgan’s executive vice president and chief financial officer, said in a prepared release. “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 United Kingdom and Czech Republic.”
Neither Silgan nor Portola officials responded to telephone requests for comment on how the acquisition will impact the Kingsport operation, which employs about 100 people, according to the First Tennessee Development District’s 2013 Directory of Manufacturers.
The announced purchase price for the transaction was $266 million, and the acquisition is expected to close as early as this September.
Silgan operates 81 manufacturing facilities in North and South America, Europe and Asia. The company supplies metal containers in North America and Europe, in addition to metal, composite and plastic vacuum closures for food and beverage products, and shelf-stable food and personal care products in North America.
Last February, Portola announced a $12 million capital expenditure for its Kingsport, and Tolleson, Ariz. facilities. The investment was made to accommodate growing market demand for its hot-fill and aseptic beverage closures and increased dairy business market share, the company disclosed in a release.
Silgan, a publicly-traded company, reported net sales of $2.29 billion in 2012.