Silgan Corp. plans to take advantage of consolidation opportunities in the plastic containers market, the firm noted in its preliminary prospectus for an initial public offering. The Stamford, Conn., packaging company did not identify any specific acquisition targets but said the plastic container industry for consumer goods is highly fragmented. It expanded its plastic container business mainly through acquisitions after the firm was founded in 1987. In that year it logged plastic container sales of $88.8 million. In 1995, that grew to $219.6 million, according to the prospectus.
Total sales in 1995 were $1.4 billion, mainly from metal containers. The total also included specialty packaging items such as metal caps and closures, plastic bowls and paper containers.
Silgan has not disclosed the size of its IPO or expected share price offer. Company officials would not return telephone calls to comment on the issue.
The firm expanded its specialty containers business in mid-1995 when it bought American National Can Co.'s Omni business. Woodstock, Ill.-based Omni made high-barrier plastic bowls and cans. The Omni acquisition was part of a larger deal in which Silgan bought American National Can's Food Metal & Container business. The deal helped boost Silgan's share of the U.S. metal food container market to 36 percent in 1995, the company said. Silgan recently agreed to acquire metal food container production from Curtice Burns Foods Inc.
Silgan will pursue internal growth for plastic containers as they take market share from glass. It is a major in custom blow molded PET and high density polyethylene containers.
Former executives of Continental Group Inc. formed Silgan. R. Philip Silver was president of Continental Can Co. and D. Greg Horrigan was executive vice president and operating officer. They and other managers plan to retain a large share in Silgan after the IPO.