Ardagh to combine food and metal packaging business with US firm
Global packaging giant Ardagh, which has its roots in Irish Glass, is to combine its food and speciality metal packaging business with Exal Corporation.
Exal is a US company controlled by Ontario Teachers’ Pension Plan Board in Canada.
The combined entity, called Trivium, will be 43pc controlled by Ardagh. Ontario Teachers will own the remaining 57pc.
Pro forma revenues and adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) in the twelve months ended March 31, 2019 at Trivium were $2.7bn (€2.4bn) and $469m (€416m) respectively.
In addition, Trivium expects to derive combination benefits of approximately $40m (€35m) over the next few years.
Paul Coulson’s Ardagh will also receive approximately $2.5bn (€2.2bn) in cash proceeds. It plans to use the proceeds for a number of debt repayment options.
Trivium will be headquartered in the Netherlands and will operate 57 production facilities, mainly across Europe and the Americas, employing around 7,800 people.
The new company will serve a range of multinational, regional and local customers operating in a number of end markets, including food, seafood, pet food, nutrition, beauty and personal care, household care and premium beverages
Mr Coulson, chairman and CEO of Ardagh and chairman of Trivium said: “Ardagh is delighted to partner with Ontario Teachers’ as shareholders in Trivium, a combination of two highly complementary and well-invested businesses.”
“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.”