Silgan Holdings

Silgan Holdings is a Connecticut-based American manufacturing company that produces consumer goods packaging. The company was founded in 1987 by two former executives of Continental Can, Phil Silver and Greg Horrigan – their names contributing to the company name.[3] Through several acquisitions of rival companies, and the pursuit of contracts with Del Monte Foods and Nestlé, Silgan Holdings' share of the market rose from 10% in 1987 to 36% in 1995. Later acquisitions in the late 1990s and early 2000s left the company with debt problems noted by both Forbes and the New York Times,[4][5] however by the early 2010s the company was consistently profitable.[6]

Silgan Holdings
Silgan Holdings
Nasdaq: SLGN
S&P 400 Component
IndustryPackaging manufacturing
Founded1987
FounderPhil Silver and Greg Horrigan
Headquarters
Stamford, Connecticut
Revenue$6.2 billion US Dollars[1]
Number of employees
12,515[2] (2017)
Websitesilganholdings.com

Silgan Holdings employs around 17,000 staff within its own and its subsidiary companies. It is currently headquartered in Stamford, Connecticut, and possesses factories across North America and Europe.[3]

History

After being founded in 1987, Silver and Horrigan proceeded to acquire several competitors and pursued contracts with Del Monte and Nestle. Their share of the market rose from 10% in 1987 to 36% in 1995, according to the New York Times.[4] The company purchased a portion of a rival organisation, the Campbell Soup Company, in 1998 for $150 million US Dollars.[7] These acquisitions, however, did saddle the company with significant debt in the late 1990s – it owed $700 million in "long term debt" in September 1997.[4] In 2003, one hundred employees went on strike over wages and health benefits, following a failure of negotiations.[8]

By the late 2000s, however, Silgan was consistently profitable. Between 2004 and 2005 profits rose by 3.1%, as did its position on the Fortune 500 list.[9] In 2009 it registered $131.6 million in profits, a 7.2% increase over 2007, and was ranked at 671, an increase of fifteen levels.[10] In 2011 Silgan attempted to purchase the entirety of Graham Packaging for $1.3 billion[1] but was ultimately outbid by Reynolds Group Holdings paying $1.68 billion.[11]

In 2013, Silgan's share-holdings had risen by 15% over the previous two years,[12] though despite several successful acquisitions including Rexam’s Plastic Thermoformed Food Business for 248.1 million,[13] dropping demand in Europe was still problematic. By July 2013, shares had fallen by 0.9%.[5] Upon completing the acquisition of Portola Packaging in October 2013,[14] however, share prices then stabilized and went on to increase by a further 5.1%.[6]

The company has not escaped controversy during the 2010s, however. In 2009 a lawsuit was filed against the organization by the US Equal Employment Opportunity Commission after viewing that the company "denied promotion to and refused reasonable accommodation for an employee who is missing three fingers on his left hand."[15] A $45,000 settlement was also paid out to an African American employee in 2010 who, the Equal Employment Opportunity Commission ruled, was terminated under racial grounds and also subjected "to disparate and discriminatory treatment such as holding him to a higher standard on his work than non-black employees."[16] This followed more strikes by staff over pay and working conditions in May 2010.[17]

Silgan Holdings acquired the food can business of Vogel & Noot Holding AG, headquartered in Vienna; the transaction was completed in March 2011.[18] VN operated in 2010 12 food can manufacturing facilities throughout Central and Eastern Europe, anticipating €250 million sales for 2010.[19] In Jan 2017, Silgan entered into an agreement to acquire WestRock’s home, health and beauty business for $1.025 billion.[20]

References
Notes
  1. Nicholson, Chris (13 April 2011). "Silgan to Buy Graham Packaging in $4.1 Billion Deal". New York Times. Retrieved 23 October 2013.
  2. "Silgan Holdings". Fortune. Retrieved 2019-01-25.
  3. "Company Profile". Silgan Holdings. Retrieved 23 October 2013.
  4. Abelson, Reed (January 12, 1997). "Despite a Lack of Bells or Whistles, A Can Maker May Be a Good Buy". New York Times. Retrieved 23 October 2013.
  5. "Silgan Holdings Breaks Below 200-Day Moving Average - Notable for SLGN". Forbes. 10 July 2013. Retrieved 23 October 2013.
  6. "Silgan Holdings Inc. : Silgan Announces Third Quarter Earnings". 4-traders. 23 October 2013. Retrieved 23 October 2013.
  7. "Company News; Campell to Sell Some Can-Making Operations to Silgan". New York Times. February 19, 1998. Retrieved 23 October 2013.
  8. "100 Silgan workers on strike". Recordnet.com. Retrieved 26 October 2013.
  9. "Silgan Holdings - 2005 Fortune 500". CNN. Retrieved 23 October 2013.
  10. "671. Silgan Holdings - 2009". CNN. Retrieved 23 October 2013.
  11. "UPDATE 2-Rank's Reynolds to buy Graham Packaging for $1.68 bln". Reuters. 2011-06-17. Retrieved 2017-12-24.
  12. "Silgan Holdings Stock Rating Reaffirmed by Zacks (SLGN)". Ticker Report. 22 October 2013. Retrieved 23 October 2013.
  13. "Silgan Completes Acquisition of Rexam's Plastic Thermoformed Food Business". BusinessWire. 2012-09-04. Retrieved 2017-12-24.
  14. "Silgan Completes Acquisition of Portola Packaging, a Leading Manufacturer of Plastic Closures". BusinessWire. 2013-10-22. Retrieved 2017-12-24.
  15. "EEOC sues Silgan Containers". Journal Sentinel. 8 September 2009. Retrieved 26 October 2013.
  16. "Silgan Containers Required to Pay $45,000 to Settle EEOC Race Discrimination Suit". US Equal Employment Opportunity Commission. 2 July 2010. Retrieved 26 October 2013.
  17. "Silgan leaders speak out as worker strike in Toppenish hits day 8". NBC. 1 May 2010. Retrieved 26 October 2013.
  18. "Silgan Completes Pending European Acquisitions". BusinessWire. 2011-03-01. Retrieved 2017-12-24.
  19. http://www.businesswire.com/news/home/20101215005813/en/Silgan-Announces-Agreement-Acquire-Vogel-Noot-Expands#.VD5kCBwTh74 Silgan Announces Agreement to Acquire Vogel and Noot; Expands Food Can Franchise to Central and Eastern Europe, 15 December 2010, Retrieved 15 October 2014
  20. "Silgan (SLGN) Buys WestRock's Dispensing Systems Business".
Sources
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