Silgan buying Graham Packaging in $1.28B deal

[April 13, 2011]  NEW YORK (AP) -- Consumer packaging maker Silgan Holdings Inc. says 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 the market for making packaging for beverage, food and consumer products.

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.

Silgan, of Stamford, Conn., says the deal is worth $4.1 billion including debt. Graham is based in York, Pa., and makes bottles and other customized plastic containers.

The boards of both companies have approved the deal. Blackstone Capital Partners and the Graham family, which own a combined 65 percent of Graham shares, will vote for the deal.

[Associated Press]

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