US-based packaging manufacturer Silgan Holdings has partnered with private equity company American Industrial Partners to purchase Trivium Packaging in an all-cash transaction valued at $3.4bn.
The transaction marks a full exit for Trivium’s existing owners.
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Ontario Teachers’ Pension Plan is divesting its controlling interest, while minority partner Ardagh Group has agreed to offload its stake of approximately 42%.
Under the agreement, Silgan will separate its operational footprint.
Its metal containers segment and food and beverage flat cap closures units will combine with Trivium to establish a joint venture named Silgan Metal Containers and Closures (Silgan MCC).
This entity will supply metal packaging for consumer staple goods, with plants located primarily in Europe and North America.
Silgan will retain a 60% controlling interest while AIP will hold 40% following an equity injection of approximately $1bn.
Concurrently, Silgan will consolidate its dispensing and custom containers operations into a separate, wholly owned division designated as Silgan Dispensing Solutions, which will manufacture specialised packaging products.
Silgan will receive approximately $2.3bn in cash proceeds from the formation and capitalisation of Silgan MCC.
Silgan said that this financing arrangement enables the group to “capitalise on meaningful synergies”, provides flexibility to fund expansion, and avoids requiring meaningful new equity from Silgan shareholders, supported by AIP’s equity contribution and operational resources.
The integration is projected to generate $225m in annual synergies by the end of the third operational year, driven by specific measures across procurement, operations, and SG&A initiatives.
Silgan anticipates the combination will deliver adjusted EPS accretion of at least 15% once full run-rate synergies are realised.
The purchase has received unanimous backing from the Silgan board of directors.
Completion is targeted for mid-2027, subject to regulatory clearances, works council consultation processes, and standard closing terms.
Financing for the transaction is fully committed, comprising bank debt secured by Silgan MCC alongside equity capital from funds affiliated with AIP.
Following completion, the five-member Silgan MCC Board of Directors will comprise three Silgan representatives and two AIP-appointed representatives.
