HedgeCo.Net — Silgan Holdings and funds affiliated with American Industrial Partners have agreed to acquire Trivium Packaging in an all-cash deal that values the Amsterdam-based metal packaging maker at an enterprise value of approximately $3.4 billion. Trivium will be combined with Silgan’s Metal Containers segment and its food and beverage flat cap closures businesses in a new partnership, Silgan Metal Containers and Closures, which Silgan said will form a $7.3 billion diversified global metal packaging business.
The structure is the notable feature for private-capital investors. AIP will contribute approximately $1.0 billion of cash equity for a 40% interest in the partnership, while Silgan will retain 60% control and receive about $2.3 billion of cash proceeds, which it plans to use to retire existing debt. The rest of the capitalization comes from fully committed bank debt, and the partnership will carry its own balance sheet that is fully consolidated into Silgan’s accounts. AIP will nominate two of the five directors of the new company, with Silgan naming three.
Silgan said the price equals 7.1 times Trivium’s last-twelve-month adjusted EBITDA, or 4.8 times including $225 million of expected synergies, and that it values its own contributed businesses at an enterprise value of $3.8 billion, or 8.1 times adjusted EBITDA. The company expects the transaction to add at least 15% to adjusted earnings per share and free cash flow. Its dispensing and custom containers businesses will stay wholly owned and be combined into a separate segment, Silgan Dispensing Solutions.
On the sell side, Ontario Teachers’ Pension Plan will fully exit a position that began with a 2010 investment in Exal, then a six-facility business that later merged into a larger metal packaging group to form Trivium. Trivium today operates 57 locations in 18 countries, employs about 7,200 people and serves more than 800 customers. “We have been investors in and partners to Trivium for 16 years,” said Greg Nielsen, senior managing director for private capital at Ontario Teachers’.
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. For allocators, it is another example of a sponsor taking a minority, board-represented stake alongside a strategic owner rather than buying a business outright, a structure that lets the corporate partner keep control and consolidation while the financial sponsor supplies equity and operating input. Evercore is lead financial adviser to Trivium and its shareholders.