US-based Silgan to Acquire Netherlands' Trivium Packaging for $3.4 Billion
en.Wedoany.com Reported - On October 19, US packaging manufacturer Silgan Holdings announced that it has reached a cooperation agreement with American Industrial Partners (AIP) to acquire Netherlands-based metal packaging manufacturer Trivium Packaging at an enterprise value of approximately $3.4 billion. The transaction will combine the two companies' metal container and food and beverage closure businesses to form a global metal packaging company with an enterprise value of approximately $7.3 billion. Silgan will hold a 60% equity stake in the new company, with American Industrial Partners holding 40%. The transaction is expected to close in mid-2027.
Under the agreement, Silgan will contribute its existing metal container business and food and beverage flat closure business to the new company, with the related assets valued at approximately $3.8 billion. American Industrial Partners will invest approximately $1 billion in equity funding, with the remaining acquisition funding raised through debt arrangements for which financing commitments have been obtained. Upon completion of the transaction, Silgan will receive approximately $2.3 billion in cash to repay existing debt, and the new company will continue to be consolidated in Silgan's financial statements.
The new company, tentatively named Silgan Metal Containers and Closures, will integrate Silgan's metal can and food packaging closure manufacturing operations in North America and Europe with Trivium's metal packaging production network. Trivium currently operates 57 facilities worldwide and employs approximately 7,200 people, with sales of approximately $3 billion in 2025. Its products include food cans, beverage containers, aerosol cans and other steel and aluminum metal packaging.
Silgan expects to achieve approximately $225 million in annual synergies by the third year after business integration, with approximately $75 million and $150 million realized in the first and second years, respectively. The related measures involve procurement, production operations, and selling, general and administrative expenses. Based on adjusted EBITDA for the trailing 12 months ended June 2026, the Trivium transaction implies a valuation multiple of approximately 7.1x.
Silgan's board of directors has unanimously approved the proposed transaction. The new company's board will have five seats, with Silgan nominating three directors and American Industrial Partners nominating two. The transaction is subject to consultation with relevant employee representative bodies, regulatory approvals and other closing procedures. Silgan's existing dispenser and custom container businesses will be integrated into a separate business segment wholly owned by Silgan.
