Healthcare Packaging Unit Of Rexam Reportedly Eyed By Rival And Private Equity Firms
Nov 15 13
The healthcare packaging unit of Rexam plc (LSE:REX) is being eyes by potential bidders which include rival firms and private equity firms. Berry Plastics Group, Inc. (NYSE:BERY), Silgan Holdings Inc. (NasdaqGS:SLGN) and Gerresheimer AG (DB:GXI) are competing to buy the healthcare packaging unit of Rexam in a deal expected to fetch a little less than $1 billion, reported Reuters citing people familiar with the matter. Rexam, which is selling the healthcare unit to focus on its core business of making beverage cans, received second-round bids earlier this week from the industry rivals, the people said. Two people, requesting anonymity because details of the process are not public, said that private equity firms including Bain Capital, LLC and Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) also put in offers. Two of the people also added that Gerresheimer had withdrawn from the auction race, but came back with an offer after Rexam signaled it would accept a lower valuation. A third source said, "It is a very heterogeneous business comprising a low-growth cash machine, a unit with a good product pipeline but in heavy need of investment and a turnaround case." Graham Chipchasem Chief Executive Officer of Rexam said that the company expects to announce a deal by end of the year 2013, or early 2014. Rexam, Gerresheimer, Bain and KKR declined to comment, while Berry Plastics and Silgan did not immediately respond to requests for comment.
Silgan Holdings Inc. Declares Quarterly Dividend Payable on December 16, 2013
Nov 7 13
Silgan Holdings Inc. announced that its Board of Directors has declared a quarterly cash dividend on its common stock. The Board of Directors approved a $0.14 per share quarterly cash dividend, payable on December 16, 2013 to the holders of record of common stock of the company on December 2, 2013.
Silgan Holdings Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2013; Provides Earnings Guidance for the Fourth Quarter of 2013; Revises Earnings Guidance for the Full Year 2013
Oct 23 13
Silgan Holdings Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2013. The company reported third quarter 2013 net income of $77.2 million, or $1.21 per diluted share, as compared to third quarter 2012 net income of $78.7 million, or $1.13 per diluted share. Adjusted net income per diluted share was $1.23 for the third quarter of 2013 as compared to $1.17 for the third quarter of 2012, after adjustments increasing net income per diluted share by $0.02 for the third quarter of 2013 and $0.04 for the third quarter of 2012. Net sales for the third quarter of 2013 were $1,167.9 million, an increase of $28.4 million, or 2.5%, as compared to $1,139.5 million in 2012. This increase was the result of an increase in net sales across all businesses. Income from operations for the third quarter of 2013 was $135.9 million, an increase of $3.5 million, or 2.6%, as compared to $132.4 million for the third quarter of 2012, while operating margin remained unchanged at 11.6% for both periods. The increase in income from operations was attributable to higher income from operations in the metal container and plastic container businesses, partially offset by an increase in corporate expenses due primarily to the timing of certain legal matters and acquisition related costs and a slight decline in income from operations in the closure business. Income from operations included rationalization charges of $1.3 million and costs attributable to announced acquisitions of $1.0 million in the third quarter of 2013 and rationalization charges of $2.1 million, new plant start-up costs of $1.4 million and costs attributable to announced acquisitions of $0.8 million in the third quarter of 2012. Income before income taxes was $118.9 million, compared to $116.4 million for the last year. Capital expenditures for the third quarter of 2013 totaled $26.6 million compared with $24.2 million in the prior year quarter.
Net income for the first nine months of 2013 was $162.1 million, or $2.50 per diluted share, as compared to net income for the first nine months of 2012 of $122.0 million, or $1.74 per diluted share. Adjusted net income per diluted share for the first nine months of 2013 was $2.31 versus $2.22 in the prior year period, after adjustments decreasing net income per diluted share by $0.19 for the first nine months of 2013 and adjustments increasing net income per diluted share by $0.48 for the first nine months of 2012. Net sales for the first nine months of 2013 increased $114.2 million, or 4.2%, to $2.84 billion as compared to $2.73 billion for the first nine months of 2012. This increase was primarily due to the inclusion of net sales from acquired operations, higher unit volumes in the metal container business, higher average selling prices in all businesses due to the pass through of higher raw material costs, the favorable impact from foreign currency translation and a favorable mix of products sold in the plastic container business. These increases were partially offset by the impact of lower volumes in the legacy operations of the plastic container business and in the closure business, including in Venezuela. Income from operations for the first nine months of 2013 was $268.9 million, an increase of $2.1 million, or 0.8%, from the same period in 2012. This increase was primarily a result of an increase in unit volumes in the metal container business, the inclusion of acquired operations, improved manufacturing efficiencies, a favorable mix of products sold in the plastic container business and lower rationalization charges and new plant start-up costs. Income before income taxes was $219.1 million, compared to $180.5 million for the last year. Net cash provided by operating activities was $0.8 million, compared to net cash used in operating activities of $6.0 million for the last year. Capital expenditure was $79.9 million, compared to $84.7 million for the last year.
The company has provided an estimate of adjusted net income per diluted share for the fourth quarter of 2013, which excludes rationalization charges, in the range of $0.44 to $0.54. This estimate compares to adjusted net income per diluted share of $0.47 in the fourth quarter of 2012.
The company revised its estimate of adjusted net income per diluted share for the full year of 2013 to a range of $2.75 to $2.85 from a range of $3.00 to $3.15. This revision is principally due to the company's performance to date, lower than expected volumes in the metal and plastic container businesses in the fourth quarter of 2013 and the impact of additional interest expense from the September 2013 issuance of $300 million of 51/2% Senior Notes. The company estimates capital spending for the full year 2013 to be in line with the prior year. The company is also revising free cash flow guidance for 2013 to approximately $225 million, down from the prior estimate of approximately $250 million.