Formerly known as Calmar Inc., WestRock’s Home, Health and Beauty business generated sales of approximately $566 million for the fiscal year-ended September 30, 2016. Calmar was purchased by MeadWestvaco in 2006. Then MeadWestvaco and RockTenn merged in 2015 to form WestRock and the new company ultimately decided to divest the business.
“We have a constant strategic focus at WestRock on aligning our portfolio and resources around our core paper and packaging solutions businesses, and the sale of our Home, Health and Beauty business is the next step in this process,” said Steve Voorhees, chief executive officer of WestRock.
For Silgan, a leading manufacturer of rigid packaging for shelf-stable food and other consumer goods products, this acquisition is an opportunity to expand into a new area of business.
“This acquisition significantly enhances the scope and breadth of our market leading closure franchise by bringing new capabilities in the highly engineered dispensing systems category,” said Tony Allott, Silgan’s President and Chief Executive Officer. “This business has a long history as a differentiated packaging franchise with deep customer relationships, a clear focus on the needs of its customers and markets and a strong track record for product innovation to meet these needs,” continued Mr. Allott.
Silgan achieved annual net sales of approximately $3.8 billion in 2015 through 88 manufacturing facilities in North and South America, Europe and Asia. The company expects to cut costs by $15 million within two years of making the purchase through improved manufacturing efficiencies, procurement savings and reductions in general and administrative expenses.
The two companies expect to close the transaction, subject to necessary government and regulatory approvals, in the quarter ending March 31, 2017.