Mergers & Acquisitions ·
Silgan spins off Metal Packaging unit into $4.9B joint venture with AIP to acquire Trivium
SLGNSilgan Holdings Inc
Silgan Holdings Inc. entered into agreements to spin off its Metal Containers and Closures Business into a new partnership, Silgan Metal Packaging LLC (MetalCo), alongside an investment vehicle affiliated with American Industrial Partners (AIP). The A-VL Investor will contribute $1.025 billion in cash for a 40% stake, while Silgan contributes the business for a 60% stake and receives a distribution of up to $2.263 billion. MetalCo has secured debt commitments totaling approximately $5.9 billion ($4.9 billion term loan and $1.0 billion revolver) to fund the transaction. Concurrently, MetalCo holds a put option to acquire Trivium Packaging B.V. for approximately $327.5 million in cash plus the assumption of roughly $3.1 billion in debt. Silgan will retain its non-metal packaging businesses. The company operates in the manufacturing and distribution of packaging products.