Silgan Holdings Inc. ( SLGN Quick Quote SLGN - Free Report) recently acquired Gateway Plastics for $485 million, in order to expand its wide range of product offerings in the Dispensing and Specialty Closures business, while providing additional growth scopes for the existing customers. Gateway Plastics manufactures dispensing closures and integrated dispensing packaging solutions, and sells these to consumer goods product companies, mainly serving the food and beverage markets. The company has a large state-of-the-art manufacturing plant in Mequon, WI, which is expected to generate around $150 million in revenues and adjusted EBITDA of $46 million in 2021. This growth capacity, along with its consistent focus on meeting customer needs, makes Gateway Plastics a perfect fit for Silgan, which is a leading global supplier of dispensing and specialty closures for consumer goods products. Silgan projects to realize tax benefits of $90 million from this buyout. Annual synergies of approximately $2 million are expected within 12 months of the acquisition. These synergies would be achieved primarily through its procurement savings. Silgan funded the deal with revolving loan facilities under its senior secured credit facility. The buyout is likely to be slightly accretive to Silgan’s bottom-line performance in the current year, while an additional accretion is expected in the next year. Last June, Silgan acquired Albea’s dispensing business in a bid to strengthen its position in the dispensing markets. The company expects to realize annual run-rate operational cost synergies of $20 million from this buyout, by the end of 2021. These acquisitions, coupled with investments in several capacity expansion projects for dispensing triggers and pumps, will aid Silgan to tap the significant growth in demand for health and hygiene products. Silgan’s Dispensing and Specialty Closures segment will gain from the recovery in the beverage, beauty and fragrance markets in the current year. Along with the Albea buyout, new business gains, improved manufacturing efficiencies and higher pension income will drive the segment’s income. Silgan expects adjusted earnings per share in the range of $3.30 to $3.45 in 2021. The mid-point of the guided range indicates a year-over-year improvement of 10.3%. The company’s continued focus on cost reduction will help counter inflated material costs and labor supply challenges. Price Performance The stock has gained 8.2% so far this year compared with the industry’s growth of 2.2%. Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Silgan currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the Industrial Products sector include Encore Wire Corp. ( WIRE Quick Quote WIRE - Free Report) , Lincoln Electric Holdings, Inc. ( LECO Quick Quote LECO - Free Report) and Deere & Co. ( DE Quick Quote DE - Free Report) . While Encore Wire and Lincoln Electric sport a Zacks Rank #1 (Strong Buy), Deere carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Encore Wire has a projected earnings growth rate of 332.6% for fiscal 2021. So far this year, the company’s shares have gained 45%. Lincoln Electric has an expected earnings growth rate of 45.1% for 2021. The stock has appreciated 22%, year to date. Deere has an estimated earnings growth rate of 117.5% for fiscal 2021. The company’s shares have rallied 36.3%, so far this year.