American Industrial Partners (AIP) has agreed to contribute approximately $1 billion in cash equity for a 40 percent stake in Silgan Metal Containers and Closures (Silgan MCC). The new business will combine Silgan Holdings' metal containers and food and beverage flat cap closures businesses with Trivium Packaging, which Silgan MCC will acquire in an all-cash deal.
The deal values Trivium at an enterprise value of approximately $3.4 billion, or 7.1x last-12-months adjusted EBITDA. Including expected synergies of $225 million, the multiple falls to 4.8x. Silgan's contributed businesses are valued at an enterprise value of $3.8 billion, or 8.1x LTM adjusted EBITDA. Silgan will receive approximately $2.3 billion in cash proceeds, which it will use to retire existing debt, and will retain a 60 percent controlling interest in Silgan MCC.
Trivium supplies recyclable metal packaging and serves more than 800 customers worldwide. It has 57 locations, 7,200 employees and net sales of approximately $3 billion in 2025. The combined business will operate principally in North America and Europe. Silgan expects the combination to generate synergies through procurement, operational and SG&A initiatives, reaching $225 million by the end of year three.
The deal has been unanimously approved by Silgan's board and is expected to close in mid-2027, subject to regulatory approvals and works council consultations. Goldman Sachs is financial adviser to AIP, while Wells Fargo is lead financial adviser to Silgan. AIP is an industrial-focused private equity firm with approximately $18 billion in assets under management.
Source: PE Hub · Summarized by HeadlinesBriefing