It's a packaging merger for the ages as Silgan Holdings Inc. announced it has entered into a definitive agreement to acquire Graham Packaging Company Inc., one of the world's 3 largest blowmolders of plastics packaging. Silgan controls about 50% of the North American metal food container market, and also makes composite, glass and plastics packaging.
Silgan is headquartered in Stamford, CT and operates 83 facilities in the Americas, Europe and Asia. Graham Packaging (York, PA) operates almost 100 facilities in the same regions, processing polypropylene, polyethylene and polyethylene terephthalate. The processor last reported its earnings on Feb.10, 2011, at $0.75 earnings per share (EPS) for the previous quarter, and quarterly revenue was up 20.4% on a year-over-year basis. Silgan entered the plastics container market in 1987 and realized sales of $588.6 million of these in 2010....