CONSTAR INTERNATIONAL ANNOUNCES ACQUISITION
CONSTAR INTERNATIONAL ANNOUNCES ACQUISITION CHATTANOOGA, Tenn., Nov. 4 /PRNewswire/ -- CONSTAR International
Inc. (NYSE: CTR) announced today that the company has signed a definitive agreement with Silgan Holdings Inc. for the purchase of all of the assets that are used by Silgan for the manufacture of plastic (P.E.T.) soft drink containers. The purchased assets include production facilities located in West Chicago, Ill., and Maumee, Ohio. In addition, certain production equipment, currently located in Langhorne, Pa., and Seymour, Ind., used in the manufacture of such containers, is being purchased.
Charles F. Casey, Constar's chairman and chief executive officer, said that management is pleased that negotiations for the purchase have been successfully completed. He said that the acquisition further demonstrates CONSTAR's dedication to maintaining its leadership role in the growing plastic container industry. Casey pointed out that the location of the two facilities adds further geographical diversification to the company's existing network of plants in the United States and Canada and is in line with management's strategic plan to develop a strong presence in the expanding Midwest market area. The company declined to reveal the purchase price of the assets that are to be acquired by CONSTAR, but said that additional sales of approximately $20 million per year will result from the transaction. Casey said that it is expected the acquisition, which is scheduled to be completed within 30 days, will have a positive impact on 1992 earnings. Existing credit facilities will be used to finance the transaction. CONSTAR's wholly owned subsidiary, Sewell Plastics, Inc., currently operates 23 production facilities in the United States and Canada. There will be 25 such facilities after the completion of this transaction, maintaining the company as the largest manufacturer of plastic containers in North America. Through its Wellstar joint venture, CONSTAR is also the largest manufacturer of plastic (P.E.T.) bottles in Europe. -0- 11/4/91 /CONTACT: James J. Goldman of CONSTAR International, 615-267-2973, or Dick Kosmicki, 212-986-1040, for CONSTAR International/ (CTR) CO: CONSTAR International Inc.; Silgan Holdings Inc. ST: Tennessee IN: PAP SU: TNM KD-PS -- NY084 -- 0960 11/04/91 17:47 EST
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|Date:||Nov 4, 1991|
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