Silgan Holdings To Acquire Graham Packaging For $19.56 per share, Graham Packaging Shares Jump In Pre-Market Trading

Shares of Graham Packaging Company Inc GRM jumped in pre-market trading after Silgan Holdings Inc SLGN agreed to purchase Graham Packaging for about $4.1 billion, including debt. Under the agreement, Silgan will acquire GRM for $19.56 per share, representing a 17% premium over Graham's closing price of $16.71 on Tuesday. The combined company would have annual sales of over $6.2 billion. Tony Allott, Silgan's President and Chief Executive Officer said, “This acquisition creates the premier Food and Specialty Beverage packaging company, allowing Silgan to significantly broaden its ability to serve these important markets with multiple rigid packaging options.” Mr. Allott added, “Graham Packaging is a differentiated plastic packaging franchise with deep customer relationships and a strong track record for innovation. In combination, we anticipate building enhanced relationships with global customers in our target end markets.” SLGN shares fell 1.58% to close at $36.83 yesterday, while GRM shares surged 12.93% to $18.87 in pre-market trading. Read more from Benzinga's Company news.