Silgan Holdings buying Graham Packaging

Consumer packaging maker Silgan Holdings Inc. is acquiring Graham Packaging Co. in a deal valued at US$1.28 billion.

According to a news release from Silgan, the deal will create a stronger force in creating packaging for beverage, food and consumer products ranging from sports drinks and beer to personal care products and motor oil.

Silgan will have approximately 17,000 employees and 180 manufacturing facilities in 19 countries once the deal is completed. Silgan also said the combined company will achieve US$50 million in cost savings by the third year after the sale closes.

The boards of both companies have approved the deal. Silgan expects the sale will close in the third quarter if regulators and shareholders approve.

Stamford, Conn.-based Silgan said the deal is worth US$4.1 billion including debt.

Graham Packaging is based in York, Pa., and molds plastic containers for juices, sport and yogurt drinks, nutritional supplements, condiments, dressings, and beers.