Rigid packaging converter Silgan Holdings is to acquire Albea’s dispensing business for $900 million.

French firm Albea’s business unit is a supplier of pumps, sprayers and foam dispensing solutions to brands in the Beauty and Personal Care markets and operates ten plants across North America, Europe, South America and Asia. For the fiscal year ended 2018, it generated sales of $383m.

Silgan expects to realise operational cost synergies of $20m within 18 months following the acquisition, which is forecast to close in the first half of the year. These synergies will be achieved primarily through reductions in general and administrative expenses, procurement savings and manufacturing efficiencies.

“This proposed acquisition would significantly enhance the scope and breadth of our 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, Silgan Holding’s chief executive. “The Albea dispensing business is a ‘hand-in-glove’ fit with our closures business. This proposed acquisition would allow us to expand relationships and product offerings with global customers.”

Albea is owned by private equity firm PAI Partners, which acquired it from an affiliate of Sun European Partners in 2018.