Weener Plastics Group B.V.

Overview Key strengths Key risks Strong niche positions in certain consumer (i.e., deodorant) and food packaging. Limited scale in a competitive and fragmented industry; some customer concentration. High barriers to entry and high switching costs (due to customers? coinvestment and co-ownership of tailor-made molds). Exposure to volatile raw material and energy costs. Strong profitability, due to the value-added nature of its products. Capital-intensive industry. On July 24, 2024, Weener Plastics announced that 3i Group PLC had signed an agreement to sell Weener Plastics to U.S.-based metal and plastic packaging solutions manufacturer Silgan Holdings Inc (BB+/Stable--). The transaction is subject to regulatory approvals and is expected to close in the fourth quarter of 2024. We expect this transaction to improve Weener

...Weener Plastics Group B.V.'s acquisition by Silgan Holdings Inc. will likely improve Weener Plastics' credit metrics and financial policy. On July 24, 2024, Weener Plastics announced that 3i Group PLC had signed an agreement to sell Weener Plastics to U.S.-based metal and plastic packaging solutions manufacturer Silgan Holdings Inc (##+/Stable--). The transaction is subject to regulatory approvals and is expected to close in the fourth quarter of 2024. We expect this transaction to improve Weener Plastics' business risk (larger scale and enhanced geographic reach) and financial risk (stronger credit metrics and less aggressive financial policy) profiles. We think that this acquisition could lead us to upgrade our long-term issuer credit rating on Weener Plastics by one or more notches. We forecast Weener Plastics' S&P Global Ratings-adjusted EBITDA margins at 20.5%-21.5% in 2024. In 2023, Weener Plastics' S&P Global Ratings-adjusted EBITDA margins improved from...

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