Ardagh to spin off metal packaging business in $2.5bn deal
Merger of unit with Exal to create one of world’s biggest metal packaging groups
Packaging group Ardagh plans to spin off its food and speciality metal business in a $2.5bn deal, merging it with aluminium container maker Exal Corporation, to create one of the biggest metal packaging companies in the world.
The new company, Trivium, will be 43 per cent owned by Ardagh, while Exal’s parent, the Ontario Teachers’ Pension Plan Board, will hold the remaining 57 per cent.
The deal comes two years after Ardagh, once a small Irish glass bottle maker, first floated its shares on the New York Stock Exchange. It has grown rapidly under Irish tycoon Paul Coulson, its chairman and chief executive, who acquired an initial stake in 1998.
The transformation of the one-time struggling minnow has catapulted Mr Coulson — a former accountant nicknamed “The Cooler” — into a position as one of Ireland’s richest men.
Trivium, which will be led by Exal chief executive Michael Mapes, will be headquartered in the Netherlands and will operate 57 production plants, mainly in Europe and the Americas, employing 7,800 people. It had pro forma revenues of $2.7bn in the year to March, and adjusted earnings before interest tax depreciation and amortisation of $496m.
“Ardagh is delighted to partner with Ontario Teachers’ as shareholders in Trivium, a combination of two highly complementary and well-invested businesses,” said Mr Coulson, who will become chairman of the new company.
“Trivium has the products, customers, innovation capabilities and leadership team to deliver continued growth and success, as brand owners and consumers increasingly seek sustainable packaging solutions.”
Ardagh was founded in Dublin in 1932 as the Irish Glass Bottle Co and has expanded through a series of acquisitions since Mr Coulson became involved. It is currently valued at around $4.5bn.
The deal is expected to close in the fourth quarter of 2019.