Wednesday, April 13, 2011

Silgan (SLGN) Acquiring Graham (GRM) in $1.28 Billion Deal

Shares of Silgan Holdings (NASDAQ:SLGN) and Graham Packaging (NYSE:GRM) are soaring today on news Silgan made a cash-and-stock offer for the company of $1.28 billion.

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

After the deal closes, Silgan said it will have about 17,000 employees and 180 manufacturing facilities in 19 countries. Expectations are the combined company will reach $50 million in cost savings by the third year after the sale closes.

The deal is expected to close in the third quarter.

Graham Packaging was trading at $21.12, gaining $4.41, or 26.39 percent, as of 12:06 PM EDT. Silgan Holdings was trading at $41.64, up $4.81, or 13.06 percent.

No comments: