Silgan Buying Graham Packaging in $1.28 Billion Deal

Consumer packaging maker Silgan Holdings Inc. said Wednesday it will acquire Graham Packaging Co. in a cash-and-stock deal valued at $1.28 billion.

The companies say 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 said it will have 17,000 employees and 180 manufacturing facilities in 19 countries once the deal is completed. It expects the combined company will achieve $50 million in cost savings by the third year after the sale closes.

The companies expect the sale to close in the third quarter if regulators and shareholders approve.

Silgan is offering 0.402 shares and $4.75 in cash for each Graham share, valuing the company at $19.56 per share. That's a premium of 17.1 percent to Tuesday's closing price.

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Silgan Buying Graham Packaging in $1.28 Billion Deal originally appeared on BloggingStocks on Wed, 13 Apr 2011 09:44:00 EST. Please see our terms for use of feeds.

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