Updated version 2 - Packaging companies Silgan and American Industrial to acquire Trivium Packaging for $3.4 billion

The full text supplements trading details and updates stock price information.

Reuters, October 19 - US consumer goods packaging manufacturer Silgan Holdings (SLGN.N) and private equity firm American Industrial Partners announced on Monday that they will acquire Trivium Packaging, a deal that will value the European company at $3.4 billion, including debt.

Rising raw material costs, caused by worsening inflation and increased geopolitical tensions, have been squeezing profit margins for packaging manufacturers.

Trivium produces recyclable packaging materials and is currently jointly held by the Ontario Teachers’ Pension Plan and Ardagh Group SA.

Silgan’s share price rose 1% in premarket trading.

According to Silgan, this transaction will merge Silgan’s metal packaging business with Trivium, creating a global metal packaging company valued at $7.3 billion.

American Industrial Partners will invest about $1 billion in Silgan’s acquisition of Trivium and hold approximately 40% of the combined company.

Silgan stated that its partnership with American Industrial Partners around the merged metal packaging business will bring approximately $2.3 billion in cash proceeds to the company, while allowing it to retain a 60% stake in the joint venture.

The company also reaffirmed its full-year adjusted earnings per share forecast and said the deal is expected to close in mid-2027.

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