Silgan To Buy WestRock's Home, Health And Beauty Business - Quick Facts

(RTTNews) - Silgan Holdings Inc. (SLGN) announced an agreement with WestRock Company (WRK) to acquire its specialty closures and dispensing systems business for $1.025 billion in cash plus the assumption of approximately $25 million in foreign pension liability. Silgan expects the acquisition to be accretive to earnings, excluding the impact of the required purchase accounting adjustments. The company said the transaction will become more accretive as synergies are phased in over the next 24 months following the closing.

WestRock's Home, Health and Beauty business designs and produces value added dispensing systems and closures for the global home care, lawn and garden, personal care, beauty, fragrance and healthcare markets. For the fiscal year-ended September 30, 2016, the business generated sales of approximately $566 million.

WestRock expects to receive net after-tax proceeds from the divestiture of approximately $1 billion. The companies expect to close the transaction in the quarter ending March 31, 2017. WestRock said additional financial information, including the expected impact to the company's 2017 results, will be provided upon the closing of the transaction.