Albéa and beauty care giant Henkel have taken a stand to avoid plastic waste. Henkel will convert its entire Oral Care portfolio to fully recyclable tubes produced by Albéa. The transition, to be concluded across all oral care brands beginning of next year, will be pioneered by the Spanish toothpaste brand Licor del Polo.
Silgan Holdings Inc., a leading supplier of rigid packaging for consumer goods products, has announced that it has signed a binding offer to acquire Albea’s dispensing business for $900 million. This business is a leading global supplier of highly engineered pumps, sprayers and foam dispensing solutions to major branded consumer goods product companies in the Beauty and Personal Care markets. It operates a global network of 10 plants across North America, Europe, South America and Asia. For the fiscal year ended 2018, this business generated sales of approximately $383 million.
“This proposed acquisition would significantly enhance the scope and breadth of our market leading closures franchise by bringing new products and capabilities in the highly engineered dispensing category, such as fine lotion dispensing solutions for skin care”
The proposed acquisition is expected to close in the first half of 2020 and is subject to the receipt of applicable regulatory approvals and the satisfaction of certain customary conditions. Upon completion of the required works councils consultations, Silgan expects that Albea and certain of its subsidiaries will enter into a definitive purchase agreement with Silgan and certain of its subsidiaries for the purchase and sale of the business.
“This proposed acquisition would significantly enhance the scope and breadth of our market leading closures franchise by bringing new products and capabilities in the highly engineered dispensing category, such as fine lotion dispensing solutions for skin care,” said Tony Allott, Chairman and CEO.
“The Albea dispensing business is a ‘hand-in-glove’ fit with our closures business. Like Silgan, this business has a long history as a differentiated packaging franchise with deep customer relationships and a strong track record of product innovation to meet customer needs. This proposed acquisition would allow us to expand relationships and product offerings with global customers, bring new customer relationships and provide cost synergy opportunities of $20 million. It would also create an incremental platform for growth and strongly enhance our free cash flow,” continued Mr. Allott.
“We believe this business, like Silgan, holds similar passions for excellence in customer support, quality, safety and competitive franchise positions, while maintaining a strong focus on returns and free cash flow,” concluded Mr. Allott.
The purchase price for this proposed acquisition would be subject to customary adjustments to be outlined in the purchase agreement. Silgan expects to fund the purchase price for this proposed acquisition with a combination of cash on hand and borrowings under the Company’s senior secured credit facility, including a committed incremental delayed draw term loan.
Highlights of the proposed transaction:
- Market Focus: Following the proposed acquisition, Silgan would expand its position in the dispensing markets to include highly engineered foam pumps, fine mist pumps, lotion pumps, samplers and fragrance caps and closures for personal care and beauty products.
- Synergies: Silgan expects to realize operational cost synergies of $20 million, on an annual run rate basis, within 18 months following the proposed acquisition. These synergies would be achieved primarily through reductions in general and administrative expenses, procurement savings and manufacturing efficiencies.
- Financial Impact: Silgan expects this proposed acquisition to be accretive to earnings and free cash flow per share in 2020, excluding the impact of purchase accounting adjustments.
- Financing: Pro forma for this proposed acquisition, Silgan’s net leverage ratio under its senior secured credit facility would be approximately 4.0 times, which is consistent with past levels following acquisitions. Silgan expects to finance this proposed transaction with debt at an attractive cost.
Albéa and Pinard Beauty Pack donate 1,000 pumps for hydro-alcoholic gel to Groupe SEB
Highly invested in the fight against COVID-19, Albéa is once again committed to its ecosystem by producing and donating 1,000 pumps to Groupe SEB. This donation of 1,000 bottles and pumps enabled Groupe SEB to bottle and make hydroalcoholic gel available to its employees on all the group's sites in France.
Albéa Publishes its 2019 CSR Report and its Sustainable Development Strategy 2020-2025
Albéa publishes its Sustainable Development Strategy 2020-2025, an ambitious CSR strategy that puts the circular economy at the heart of its business model. The packaging company also reflects on their commitment to sustainable development during 2019.
Albéa donates bottles and airless pumps to the Paris-Saclay University
During the second quarter of 2020, Albéa has helped the Paris Saclay University with a gift of airless pumps and bottles destined to the student of the prestigious campus. It is on the Lacrost site (Burgundy), which belongs since the 1st of June to Silgan Dispensing, that the 1500 packs of bottles and airless pumps were manufactured and given.
The sanitary crisis is inciting the travel industry to adapt and re-invent itself. In this exceptional context, Albéa Travel Designer innovates and proposes “Travel&StaySafe”, a unique and customizable travel kit including mask, hydro-alcoholic gel, gloves etc. This new offer is proposed to airlines, but also to railways, shipping companies and private transport companies.
La Roche-Posay, the dermatological skin care brand from L’Oréal group, has partnered with Albéa to produce an innovation new generation of eco-friendly packaging: a partially cardboard-based tube. the tube packaging, integrating cardboard, is designed as an alternative to the various packaging solutions currently used for cosmetic products. The use of plastic is reduced by 45% compared to existing solutions.
Decor & Development 4.0: Speed, reliability, and flexibility for new Tube developments
In a market with shorter lead-times and smaller order sizes, digital technology is obviously part of the solution – from digital printing to collaborative platforms via data sharing in real-time. Together with our partner and global specialist of the industrial graphic chain Esko, we have developed pre-press tools for digital printing, as well as a collaborative platform to manage projects within our industrial facilities, across sites, and directly with our customers or their design agencies.
Erpro 3D Factory supports hospitals with 3D printing
Albéa partner Erpro 3D Factory is fully mobilized in the sanitary crisis, thanks to 3D printing. All Erpro 3D Factory teams and production workshops have come together to fight the virus. 3D printers run 24 hours a day to manufacture parts for ventilators, and protective glasses and visors.
Albéa and L’Occitane France have taken their 15-year collaboration further by co-manufacturing liquid soap and hydroalcoholic gel in a tube packaging. Albéa is proud to partner with L’Occitane Group,contributing to the delivery of one million care products since February in support of healthcare workers around the world.
While the cosmetics industry is gearing up around the world to supply the hygiene products necessary to fight the epidemic of Covid-19 linked to the new coronavirus, Albea is focusing its production on top-priority items such as tubes for Hand Sanitizer where they are witnessing a huge peak in demand.
In Europe, the Vandières and Argonne (France) and Lubna (Poland) facilities in particular produce millions of tubes for hydro-alcoholic gel while the Lacrost plant (France) manufactures lotion pumps for hand sanitizers. Our tube and pump sites in the US, India, Brazil, and Indonesia also contribute to their customers’ initiatives for national solidarity.
Albéa and Erpro 3D Factory collaborate for creativity and customization at industrial scale
Albéa has announced the launch of a global business partnership with leading 3D technology innovation start-up Erpro 3D Factory. This partnership will allow Albéa and Erpro 3D Factory to offer industrial series of fully personalized cosmetic packaging solutions, in yet-unseen creative shapes.
Albéa reaffirms its unwavering commitment to the New Plastics Economy
Today the Ellen MacArthur Foundation and the UN Environment Programme release the first New Plastics Economy Global Commitment progress report, showcasing their signatories’ efforts to combat plastic waste and pollution. One year ago, in October 2018, Albéa was the first cosmetic packaging company to sign the Global Commitment.
Albéa's APR-compliant recycling-ready tube for oral care & other applications
Albéa's second-generation Greenleaf tube has passed successfully the two tests set by the US-based Association of Plastic Recyclers (APR) to assess recycling-readiness. Greenleaf tubes are patented all-plastic laminate tubes for oral care as well as personal care and OTC pharma brands.
As part of their partnership for responsible packaging innovation, L’Oréal and Albéa have announced the development of a breakthrough innovation for cosmetic packaging. The two companies have invented the first carton-based cosmetic tube, where plastic is for the most part replaced with a bio-based and certified paper-like material.
Albéa unveils its first Sustainable Development Report
Albéa is proud to unveil its first Sustainable Development Report. Albéa's commitment to Corporate Social Responsibility goes back 15 years and is widely recognized by its customers and partners, as well as third-party experts such as EcoVadis and CDP. This voluntary report aims at sharing our new Sustainability strategy, which comprises three missions.
Albéa's Constellation mascaras
Reach for the stars with Constellation, Albéa’s new collection of mascara fiber brushes. Carefully put together by beauty packaging experts at the Albéa Tips Studio, based out of the Bottanuco (Italy) industrial facility, these innovative eyemakeup products empower brands to offer consumers the make-up look of the stars!
Our society is undergoing a major transformation: the digital revolution. This technical evolution impacts ways of working, learning, living, interacting and consuming. More than half of all in-store purchase is influenced by digital commerce. Albéa leverages proven technical expertise to offer a wide range of e-commerce compliant dispensing and sealing solutions such as lockable pumps and caps.
MEA amenity kit by Albéa Travel Designer
Middle East Airlines is launching on board a new kit exclusively designed by Albéa Travel Designer. This design is an exclusive creation of Albéa Travel Designer for MEA. The modernity of the kit matches with the airline’s recent investment in keeping its fleet rejuvenated, constantly replacing older models with new generation, more fuel-efficient aircrafts.
Albéa manufactures the refillable and eco-designed packaging of Yves Saint Laurent Or Rouge
Designed as a jewel box containing the most precious of skincare creams, Yves Saint Laurent reinvents skincare with the Or Rouge range. As part of a sustainable approach, faithful to Yves Saint Laurent's commitment, Or Rouge has been designed as a luxurious refillable and recyclable case.
- Jo Webb
- Company News
- Created 27 Jan 2020
- Modified 27 Jan 2020
- Hits 370