Ardagh Group to list metal packaging unit in new US$8.5bn merger deal

US – Ardagh Group, one of the world’s largest metal and glass packaging companies, has entered into an agreement to combine its metal packaging business with Gores Holdings V, creating a new public listed company with an enterprise value of US$8.5 billion.

Gores Holdings V is  a special purpose acquisition company sponsored by global investment firm: The Gores Group.

Under the deal, Gores Holding will merge Ardagh’s metal packaging division to create Ardagh Metal Packaging (AMP), which will then apply for a listing on the New York Stock Exchange.

US$3.4Bn payment for 20% stake in AMP

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 Upon completion of the transaction, Ardagh will retain an approximately 80% stake in AMP and receive up to US$3.4 billion in cash for the 20% stake ceded.

Ardagh will receive up to US$525 million in cash from Gores Holdings V and US$600 million in a private placement led by investors.Additionally, the company will receive approximately US$2.3 billion of new debt raised by AMP.

Investors in the private placement will hold approximately 10% in the new company, while Gores Holdings V’s stockholders will own the remaining 10% share.

“We are delighted to partner with Gores Holdings V to create a NYSE-listed pure-play beverage can business of scale with impeccable ESG credentials, and we intend to remain a committed, long-term majority shareholder of AMP as it continues its growth journey.”

Paul Coulson, chairman and CEO of Ardagh

A world leader in sustainable packaging

AMP produces recyclable beverage cans for the Americas and Europe and intends to continue capitalising on environmental products in traditional and new beverage categories following the transaction.

The metal packaging was acquired in 2016 by the Ardagh Group and has grown significantly since.

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Paul Coulson, chairman and CEO of Ardagh, says the unit  has a clear roadmap that “we believe will lead us to more than double adjusted EBITDA by 2024, as we invest in support of our customers’ growth.”

“We are delighted to partner with Gores Holdings V to create a NYSE-listed pure-play beverage can business of scale with impeccable ESG credentials, and we intend to remain a committed, long-term majority shareholder of AMP as it continues its growth journey,” Coulson added.

Last year, Ardagh purchased a facility in Ohio and announced it was increasing the production capacity of its Mississippi plant, in response to increased demand for infinitely recyclable beverage cans.

Driven by a renewed interest in cans as convenient and sustainable alternatives to plastic during the pandemic, the global aluminium cans market attained a value of US$985.71 billion in 2020.

In the forecast period of 2021-2026, the industry is expected to witness a CAGR of 3.0% to reach a value of USD 1142.71 billion by 2026.

“Sustainability is an important component of our investment strategy, and AMP is a clear leader in this space – environmentally, ecologically and socially,” said Mark Stone, senior managing director of The Gores Group and CEO of Gores Holdings V.

“As customers around the world continue to demand sustainable solutions, we believe the company is strongly positioned to capitalise on the exceptional growth opportunities ahead and we’re thrilled to be partnering with the team to do so,” he added.

Oliver Graham, CEO of Ardagh Metal Beverage will take up the role of AMP CEO, while Ardagh chairman and CEO, Paul Coulson, will serve as chairman of the combined company.

The merger is expected to close in the second quarter of 2021.

Ardagh will continue to retain 100% ownership of its glass packaging business, as well as its 42% stake in Trivium Packaging.

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