Connecticut-based metal food packaging provider Silgan Containers will acquire Mequon-based Gateway Plastics Inc. in a $485 million deal.
Gateway manufactures and sells dispensing closures and integrated dispensing packaging products to consumer goods companies operating in the food and beverage markets. In addition to food and beverage, the injection molder’s products serve a variety of markets including pet care, chemical and nutraceuticals.
Gateway operates a more than 330,000 square-foot manufacturing facility at 5650 W. County Line Road in Mequon and is projected to generate about $150 million in sales this year, according to the company.
“Gateway has existing capacity for growth as it is very well capitalized with state-of-the-art equipment and market-leading capabilities and, like Silgan, maintains a relentless focus on meeting the unique needs of its customers,” Silgan president and CEO Adam Greenlee said in a statement.
Silgan expects the acquisition to realize $90 million in tax benefits and about $2 million in annual synergies within 12 months, according to a U.S. Securities and Exchange Commission filing.
Gateway was not immediately available for comment.
Silgan is a global supplier of sustainable rigid packaging solutions for consumer goods products with annual net sales of approximately $4.9 billion in 2020. The manufacturer supplies packaging solutions for food, beverage, health care, garden, home, personal care and beauty products.
Silgan operates 110 manufacturing facilities in North and South America, Europe and Asia. The company has manufacturing plants, training and technology centers and offices across southeastern Wisconsin including in Kenosha, Oconomowoc and Menomonee Falls.
“We believe Gateway’s advanced automation platform can be leveraged across much of Silgan’s manufacturing footprint,” Greenlee said in a statement.
Brookfield-based N2 Advantage Law served as Gateway’s sole advisor in the $485 million deal. The boutique firm was launched last year by former von Briesen & Roper, s.c. attorney Tim Nettesheim and Joel Nettesheim, former principal and co-leader of business advisory services at SVA Certified Public Accountants.
