Silgan Holdings Inc. has paid US$42.5 million to buy Canadian extrusion blow molder Cousins-Currie Ltd., as Silgan expands into larger containers.
Cousins-Currie generated sales of about US$48.4 million in 2006 from two plants in Woodbridge, Ontario, near Toronto. The company molds custom-designed bottles in sizes of 2-30 liters, for the agricultural, institutional food, lawn and garden, detergent and industrial markets in Canada and the United States.
The company runs 35 blow molding machines and employs 260, according to its Web site.
Silgan, based in Stamford, Conn., and traded on Nasdaq, generated 2005 sales of US$2.5 billion from 66 plants in the U.S., Canada and Europe. Silgan claims to be the largest supplier of steel and aluminum food containers, including easy-open cans. Silgan also is a major blow molder of PET and high density polyethylene containers for personal-care and health-care products and industrial chemicals and other products.
The plastic container business, Silgan Plastics Corp., generated 2005 sales of US$610.1 million. It is the ninth-largest blow molder in North America, according to Plastics News' ranking.
Bob Lewis, Silgan Holdings' executive vice president and chief financial officer, said Cousins-Currie is ``an excellent fit with our Canadian plastics businesses.''
A packaging analyst, Ghansham Panjabi with Wachovia Capital Markets LLC in New York, said Cousins-Currie ``strays away from Silgan's core markets.'' But in a report on the deal, he wrote: ``The company remains consistent with its existing strategy - focusing on the custom container market [with] higher margins, rather than acquiring for scale.''
Even so, Panjabi said he would have preferred that Silgan had bought a company in the food cans or closures area, ideally serving international markets, since the company's plastics business has underperformed in the past few years.