Silgan Holdings Stock

Silgan Holdings Inc. operates as a manufacturer of sustainable rigid packaging solutions for the consumer goods products worldwide.

The company’s products are used for a wide variety of end markets. It operates 112 manufacturing plants in North America, Europe, Asia, and South America.

The company’s products include dispensing and specialty closures for food, beverage, health care, garden, home, personal care, fragrance and beauty products; steel and aluminum containers for human and pet food and general line products; and custom designed plastic containers for personal care, food, health care, pharmaceutical, household and industrial chemical, pet food and care, agricultural, automotive and marine chemical products.

The company is a leading worldwide manufacturer of dispensing and specialty closures for food, beverage, health care, garden, home, personal care, fragrance and beauty products. Its dispensing and specialty closures business provides customers with an extensive variety of innovative dispensing systems and proprietary specialty closures solutions that ensure closure quality and safety, as well as state-of-the-art capping/sealing equipment and detection systems to complement its product offering. The company has 46 dispensing and specialty closure manufacturing facilities located in North America, Europe, Asia and South America, from which it serves over 100 countries throughout the world. In addition, the company licenses its technology to four other manufacturers for various international markets.

The company is also a leading manufacturer of metal containers in North America and Europe, and in North America. The company has 43 metal container manufacturing facilities located in the United States, Europe and Asia, serving over 50 countries throughout the world.

Additionally, the company is a leading manufacturer of custom containers in North America for a variety of markets, including the personal care, food, health care and household and industrial chemical markets. The company produces custom containers from a full range of resin materials and offer a comprehensive array of molding and decorating capabilities. The company’s customer base includes some of the world’s best-known branded consumer products companies.

Segments

The company operates through three segments: Dispensing and Specialty Closures Business; Metal Containers Business; and Custom Containers Business.

Dispensing and Specialty Closures

This segment is a leading worldwide manufacturer of dispensing and specialty closures for food, beverage, health care, garden, home, personal care, fragrance and beauty products. The company’s dispensing and specialty closures business provides customers with an extensive variety of innovative dispensing system solutions, including integrated dispensing packaging solutions, and proprietary metal and plastic specialty closures that ensure closure quality and safety, as well as state-of-the-art capping/sealing equipment and detection systems to complement its specialty closures product offering. The company has 46 dispensing and specialty closures manufacturing facilities located in North America, Europe, Asia and South America, from which it serves over 100 countries throughout the world. In addition, the company licenses its technology to four other manufacturers for various markets.

The company’s dispensing and specialty closures business manufactures dispensing systems for health care, garden, home, personal care, fragrance, beauty and food products, such as health care nasal spray and topical applications, lawn and garden products, hard surface cleaning products, professional cleaning products, air and fabric care products, perfume and other fragrance products, skin care products, lotions, cosmetics, soaps, hair care products and other bath and body products and condiments. With the company’s acquisition in 2020 of the Albea Dispensing Business, it expanded its dispensing systems portfolio, including for highly engineered pumps, sprayers and foam dispensing solutions for the beauty, fragrance and personal care markets. With the company’s acquisition in 2021 of Silgan Specialty Packaging, it further grew its dispensing systems portfolio with integrated dispensing packaging solutions offerings. The company’s acquisition in 2021 of Unicep Packaging LLC (Silgan Unicep) complemented its global dispensing and specialty closures business by expanding and extending its precision dosing capabilities and comprehensive product offering into new and existing markets and broadened its exposure to health care and Point-of-Care diagnostics markets.

The company also manufactures metal and plastic specialty closures, many of which maintain a vacuum, for food and beverage products, such as ready-to-drink teas, sports drinks, dairy products, tomato sauce, salsa, pickles, baby food, juice drinks, ketchup, preserves, soup, cooking sauces, gravies, fruits, vegetables and infant formula products. The company provides customers for its specialty closures with custom formulations of sealing/lining materials, designed either to minimize removal torques and enhance openability of its closures or to maintain sealability of its closures, in each case to meet the unique needs of its customers while also meeting applicable regulatory requirements. The company offers its customers an extensive range of decorating options for its dispensing and specialty closures for product differentiation. The company also provides customers with sealing/capping equipment and detection systems to complement its specialty closures product offering.

The company manufactures twist-off, lug style and press-on, twist-off steel closures and aluminum roll-on closures for glass, metal and plastic containers, ranging in size from 18 to 110 millimeters in diameter.

Metal Containers

This segment is a leading manufacturer of metal containers in North America and Europe, and in North America. The company’s metal containers business is engaged in the manufacture and sale of steel and aluminum containers that are used primarily by processors and packagers for food products, such as pet food, vegetables and fruits, soup, proteins (e.g., meat, chicken and seafood), tomato based products and other miscellaneous food products, as well as general line metal containers primarily for chemicals. With the company’s acquisition in 2021 of Easytech Closures S.p.A. (Easytech), it increased its manufacturing capacity for easy-open ends for metal containers. The company has 43 metal container manufacturing facilities located in the United States, Europe, and Asia, serving over 50 countries throughout the world. The company manufactures steel and aluminum two-piece cans.

Custom Containers

This segment produces custom containers from a full range of resin materials and offer a comprehensive array of molding and decorating capabilities. The company is one of the leading manufacturers of custom designed high density polyethylene (HDPE) and polyethylene terephthalate (PET) containers in North America for the markets that it serves. The company is also a leading manufacturer in North America of thermoformed barrier and non-barrier bowls and trays for shelf-stable food products. It operates 23 custom container manufacturing facilities in the United States and Canada.

The company manufactures custom designed and stock plastic containers for personal care and health care products, including containers for shampoos, conditioners, hand creams, lotions, liquid soap, mouthwash, respiratory and gastrointestinal products, cosmetics and toiletries; food and beverage products, including peanut butter, salad dressings, condiments, spices, dairy products and liquor; household and industrial chemical products, including containers for lawn, garden and agricultural products, scouring cleaners and cleaning agents; and pharmaceutical products, including containers for tablets and antacids. In addition, the company manufactures thermoformed barrier and non-barrier bowls and trays for food products, such as pet food and soups and other ready-to-eat meals, as well as thermoformed tubs for food products. It also manufactures plastic closures, caps, sifters and fitments for food and household products, including salad dressings, condiments, peanut butter, spices, liquid margarine, powdered drink mixes and arts and crafts supplies.

The company’s leading position in the custom container market is largely driven by its rapid response to its customers’ design, development and technology support needs and its value-added, diverse product line. This product line is the result of the company’s ability to produce custom containers from a full range of resin materials using a broad array of manufacturing, molding and decorating capabilities. The company also strives to remain current with and, to some extent, anticipate innovations in resin composition and applications and changes in the technology for the manufacturing of custom containers.

Strategy

The key elements of the company’s strategy are to supply ‘best value’ packaging products with high levels of quality, service and technological support; and expand through acquisitions and organic growth.

Sales and Marketing

The company markets its products primarily by a direct sales force, including manufacturer's representatives, and for its custom containers business, in part, through a network of distributors. Approximately 13 percent of the company’s consolidated net sales were to Nestle in 2022.

Dispensing and Specialty Closures

The company’s largest customers of its dispensing and specialty closures business include Campbell Soup Company (Campbell); The Coca-Cola Company, Colgate-Palmolive Company; Dairy Farmers of America; Estee Lauder Companies; The Kraft Heinz Company (Kraft Heinz), L'Oreal S.A.; LVMH Moët Hennessy Louis Vuitton; Mizkan Holdings Co., Ltd.; Molson Coors Brewing Company; Natura & Co., Nestle S.A (Nestle), O Boticário; PepsiCo Inc.; The Procter & Gamble Company; S. C. Johnson & Son, Inc.; The Scotts Company LLC; and Spectrum Brands Holdings, Inc. and its affiliated entities, including United Industries Corporation, Treehouse Foods Inc. and Unilever, plc.

Metal Containers

The company has 43 metal containers manufacturing facilities located in the United States, Europe, and Asia, serving over 50 countries throughout the world. Its largest customers for these products include Campbell; Conagra Brands, Inc.; Del Monte, General Mills, Inc.; Hill's Pet Nutrition, Inc.; Hormel Foods Corporation; Kraft Heinz, Mars, Incorporated; Nestle; Nortera Foods Inc.; Pacific Coast; Stanislaus Food Products Company; Thai Union Group; and Tony Downs Foods Co. The company also supplies Nestle with closures in North America and Europe and plastic containers in North America

Custom Containers

The company’s largest customers for its custom containers business include Berlin Packaging LLC; Campbell; Conagra Brands, Inc.; General Mills, Inc.; Johnson & Johnson; Kraft Heinz; Mars, Incorporated; McCormick & Company, Inc.; Nice-Pak Products, Inc.; Perrigo Company plc; The Procter & Gamble Company; The Scotts Company LLC; TreeHouse Foods Inc.; and TricorBraun, Inc.

Competition

Dispensing And Specialty Closures Business

The company’s dispensing and specialty closures business competes primarily with AptarGroup, Inc.; Bericap Holding GmbH; Berry Global Group, Inc.; Closures Systems International, Inc.; Crown Holdings, Inc.; Eviosys Packaging Switzerland GmbH; Guala Dispensing Mexico, S.A. de C.V.; Massilly Holding SAS; and Tecnocap S.p.A.

Metal Containers

Of the commercial metal container manufacturers, Crown Holdings, Inc.; Eviosys Packaging Switzerland GmbH; Sonoco Products Company (which recently acquired Ball Metalpack, LLC); and Trivium Packaging are the company’s most significant competitors.

Custom Containers

The company’s competitors include Alpla-Werke Alwin Lehner GmbH & Co. KG; Amcor Limited, Berry Global Group, Inc.; Cebal Americas; Altium Packaging LLC; Graham Packaging Company; Plastipak Holdings, Inc.; and Pretium Packaging LLC.

Governmental Regulations

The company is subject to the Occupational Safety and Health Act and other federal, foreign, state and local laws regulating noise exposure levels and other safety and health concerns in the production areas of its plants.

History

Silgan Holdings Inc., a Delaware corporation, was founded in 1987. The company was incorporated in 1989.