US packaging group Silgan Holdings has announced plans to acquire Amsterdam-based Trivium Packaging in an all-cash deal valuing the company at approximately $3.4 billion, creating a combined metal packaging business worth $7.3 billion.
Under the proposed transaction, Silgan will combine its Metal Containers segment and food and beverage flat cap closures businesses with Trivium to form a new entity called Silgan Metal Containers and Closures (Silgan MCC). The deal values Trivium at 7.1 times last twelve months adjusted EBITDA, falling to 4.8 times when expected synergies of $225 million are included.
Private equity firm American Industrial Partners (AIP) will take a 40% stake in the new partnership, contributing approximately $1 billion in cash equity. Silgan will retain 60% controlling ownership and receive around $2.3 billion in cash proceeds, which will be used to retire existing debt.
Silgan's dispensing and custom containers businesses will be separated into a wholly owned segment renamed Silgan Dispensing Solutions, operating as a standalone specialty packaging platform.
Adam Greenlee, president and chief executive of Silgan, said: "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. At the same time, it establishes two focused packaging platforms, each with distinct strategies and opportunities."
Trivium chief executive Michael Mapes said: "With Silgan and AIP's support, we will operate with increased scale and reach to advance our vision of delivering high-quality, innovative, and recyclable packaging products to consumers."
The combined business is expected to generate $225 million in synergies by the end of year three, with around $75 million in the first year and $150 million in the second. Silgan said the deal would deliver at least 15% accretion to adjusted earnings per share at full run-rate synergies.
The transaction, unanimously approved by the Silgan board, is expected to close in mid-2027 subject to regulatory approvals and completion of works council consultations.
