Silgan announces partnership to acquire Trivium at $3.4 billion enterprise value
Key Facts
Silgan announced proposed transactions to form a partnership that will acquire Netherlands-based Trivium in a cash deal valuing the business at about $3.4 billion, according to a company statement. The partnership includes an affiliate of American Industrial Partners funds and combines the two sides' metal packaging operations in a new entity. The entity, to be named Silgan MCC, will include Silgan's metal containers segment alongside Trivium. It will also include the food and beverage flat closures business Silgan operates within its existing portfolio. According to the investor presentation filed with the U.S. Securities and Exchange Commission, the combined business has net sales of about $7.3 billion on a trailing twelve-month basis.
Upon completion of the deal, Silgan will retain a controlling 60% ownership stake in the new partnership, according to its statement. American Industrial Partners funds will own the remaining 40%, according to Sidley Austin, legal adviser to the partnership. The funds will contribute about $1.0 billion in equity to support the acquisition and future growth, with committed debt completing the entity's financing. The estimated capitalization structure in the investor presentation shows expected partnership net debt of $4.6 billion. Estimated net leverage is 4.0 times, including the full annual run rate of expected synergies, according to Silgan's presentation.
Silgan expects the transactions to increase adjusted earnings per share by "at least 15%," according to its statement, including the full annual run rate of expected synergies. The investor presentation sets out a phased path for those synergies, with the company targeting annual savings of about $75 million in the first year. The annual target rises to $150 million in the second year of the plan. In the third year, the company aims to reach annual savings of $225 million, according to the same presentation. Silgan said procurement, operations, and selling, general and administrative expense initiatives would deliver the targeted synergies within the combined business.
Trivium brings revenue of $3 billion in 2025 to the partnership, according to Ardagh Group's statement on the sale of its stake. The company serves more than 800 customers worldwide, according to Silgan's statement filed with the U.S. Securities and Exchange Commission. Trivium's network comprises about 57 locations covering production, distribution, research and development, and offices, according to its official website. Its operations span 18 countries across the Americas, Europe, Asia and Africa, according to the company. Meanwhile, Silgan will combine its dispensing systems and custom containers businesses in the Silgan Dispensing Solutions segment, with those businesses remaining wholly owned.
On the sellers' side, Ardagh Group agreed to sell its entire stake in Trivium as part of the proposed deal, according to a group statement. The stake Ardagh intends to divest represents about 42% of the company. The group expects net cash proceeds of about $90 million upon completion of the sale, which it intends to reinvest in the business or use to reduce debt. Silgan, meanwhile, expects to receive about $2.3 billion in cash proceeds upon the formation and financing of the partnership, according to its statement. The company intends to use those proceeds to repay some of its existing debt as part of the proposed transactions to reshape its business portfolio.
The deal is subject to the necessary regulatory approvals, according to Silgan's statement filed with the U.S. Securities and Exchange Commission. Completion also requires consultations with the works councils concerned by the proposed transactions. Closing remains subject to the other customary closing conditions outlined in the statement. The parties expect the acquisition to close in mid-2027, according to legal adviser Sidley Austin's announcement regarding the partnership. Before then, Silgan will announce its third-quarter 2026 results on October 29, 2026, before U.S. markets open, according to the schedule set out in its earnings announcement.