Silgan (SLGN) Stock Rises on $3.4 Billion Trivium Deal: How the AIP Partnership Works

Silgan Holdings stock rose on Monday, October 19, 2026, after the packaging maker agreed to a $3.4 billion deal for Trivium Packaging. The shares traded at $40.00, up 5.82% on the day. Silgan is not buying Trivium on its own. It is putting its metal food can business into a new partnership with funds run by American Industrial Partners (AIP), and that partnership is buying Trivium for cash.

The deal values Trivium at 7.1 times its adjusted EBITDA for the 12 months to June 30, 2026, a measure of operating profit before interest, taxes, depreciation and amortization. Silgan expects $225 million of yearly cost savings by the end of the third year, which would bring the price down to 4.8 times. It says the deal will add at least 15% to its adjusted earnings per share and free cash flow once those savings are counted.

How the partnership works

Silgan contributes its Metal Containers unit and its food and beverage closures business to the new company, Silgan MCC, valued at $3.8 billion, or 8.1 times that business's adjusted EBITDA for the last 12 months. AIP invests about $1.0 billion of cash for a 40% stake, and Silgan keeps 60%. Silgan MCC then pays $3.4 billion for Trivium, including Trivium's debt. The combined business has an enterprise value of about $7.3 billion.

Silgan receives about $2.3 billion of cash from the transaction and uses it to repay its own debt. Silgan MCC carries the borrowing instead: $4.6 billion of net debt, four times its adjusted EBITDA, with financing fully committed by five banks. Silgan keeps three of the five board seats and will consolidate Silgan MCC in its accounts. The rest of Silgan, its dispensing and specialty closures and custom containers businesses, becomes Silgan Dispensing Solutions, wholly owned by Silgan and outside the deal.

Silgan values its own unit above the price it pays for Trivium

Silgan's businesses go into the partnership at 8.1 times adjusted EBITDA, while Trivium comes in at 7.1 times before any savings. Buying at a lower multiple than its own business carries is one way the deal adds to Silgan's earnings per share. By Silgan's count, Trivium earned $478.3 million of adjusted EBITDA on $3,080.9 million of sales in the 12 months to June.

Trivium makes metal cans and aerosol containers for food, seafood, pet food, nutrition, beauty and personal care products, mostly in North America and Europe. Its controlling owner, Ontario Teachers' Pension Plan, is leaving, and Ardagh Group is selling its stake of about 42% for about $90 million of net cash.

What comes next

Silgan reports third-quarter results on October 29, before the market opens. With Monday's announcement it confirmed its outlook for third-quarter and full-year 2026 adjusted earnings per share, last given as $1.21 to $1.31 for the quarter and $3.73 to $3.93 for the year.