Silgan Holdings Inc. (NYSE:SLGN) shares traded higher on Monday after the company announced that it agreed to acquire Trivium Packaging B.V. in an all-cash transaction valuing Trivium at about $3.4 billion.
Silgan will combine Trivium with its Metal Containers and Food and Beverage Flat Cap Closures businesses to create Silgan Metal Containers and Closures (Silgan MCC), a metal packaging business valued at about $7.3 billion.
Trivium generated $3 billion in net sales in 2025. The deal values Trivium at 7.1 times last-12-month adjusted EBITDA, or 4.8 times including expected synergies.
Silgan values its contributed businesses at about $3.8 billion, or 8.1 times LTM adjusted EBITDA.
Deal Structure
Silgan will receive about $2.3 billion in cash by capitalizing Silgan MCC, funded by an equity contribution from American Industrial Partners (AIP) and debt financing raised by the partnership.
Silgan will use the proceeds to retire certain existing debt while retaining a 60% controlling stake. Funds affiliated with AIP will own the remaining 40% and contribute about $1 billion of cash equity.
A bank consortium will provide the remaining financing through fully committed debt.
Silgan MCC will maintain an independent balance sheet, while Silgan will fully consolidate it into its financial statements.
Silgan will separately combine its Dispensing and Custom Containers businesses into a wholly owned Silgan Dispensing Solutions segment.
The company said the structure creates two focused packaging platforms and a pathway to a tax-free distribution that could create two separate entities.
Silgan held cash and cash equivalents of $351.5 million as of June 30, 2026.
Synergies And Accretion
Silgan expects $225 million of synergies by the end of year three through procurement, operational, and SG&A savings, including about $75 million in year one and $150 million in year two.
Including full run-rate synergies, Silgan expects the transaction to drive at least 15% accretion to adjusted EPS and free cash flow.
Silgan said the combination will broaden its geographic reach and product offering while improving supply security for customers. The company also expects the transaction to provide greater financial flexibility for investment in its Dispensing Solutions business.
Trivium Owners Exit
Ontario Teachers’ Pension Plan agreed to sell its majority stake in Trivium. Ardagh Metal Packaging SA (NYSE:AMBP) will also sell its approximately 42% stake and expects about $90 million in net cash proceeds.
Silgan’s board unanimously approved the transaction. Closing is expected in mid-2027.
“This transaction is expected to generate substantial value for shareholders, delivering approximately $2.3 billion of cash proceeds to Silgan while strengthening our global metal packaging business,” CEO Adam Greenlee said.
SLGN Stock Price Activity: Silgan shares traded 6.24% higher at $40.16 at the time of publication Monday, according to Benzinga Pro data.
Photo: Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
