Food and Specialty Metal Packaging to combine with Exal to form Trivium Packaging
The combination of Food and Specialty with Exal, currently controlled by Ontario Teachers' Pension Plan Board, will create one of the largest metal packaging companies in the world.
Trivium will be headquartered in the Netherlands and will operate 57 production facilities, principally across Europe and the Americas, employing approximately 7,800 people.
Pro forma revenues and Adjusted EBITDA in the twelve months ended March 31, 2019 were $2.7 billion and $469 million respectively.
In addition, Trivium expects to derive net combination benefits of approximately $40 million over the next few years, from the pursuit of commercial and operational excellence opportunities.
Trivium will serve a diverse range of leading multinational, regional and local customers operating in a wide array of end markets, including food, seafood, pet food, nutrition, beauty and personal care, household care and premium beverages.
This complementary transaction will combine Food and Specialty's leading presence in Europe and North America, principally focused on tin-plate steel packaging, with Exal's leadership in Americas aluminum aerosol packaging.
Trivium will produce an extensive and sustainable product range, backed by dedicated research and development resources, underpinning the businesses' reputation for customer service, quality and innovation.
Paul Coulson, Chairman and CEO of Ardagh, will be Chairman of Trivium.
Michael Mapes, CEO of Exal, will be CEO and will lead a highly experienced team drawn from across both businesses.
Upon completion of the transaction, Ardagh will hold a 43 per cent stake in Trivium, with 57 per cent controlled by Ontario Teachers'.
Ardagh will also receive approximately $2.5 billion in cash proceeds.
Completion of the transaction is subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals and confirmation of the participation of certain Ardagh European entities in the transaction, which remains subject to works councils' consultation.
Completion is also subject to closing of the debt financing expected to be announced by Trivium later.
The transaction is expected to close in the fourth quarter of 2019. ■