The transaction, which is expected to close Q4, 2019, will combine Ardagh’s Food & Specialty business in Europe and North America, for tin-plate steel packaging, with Exal’s aluminium aerosol packaging presence in the Americas.
Sustainable packaging
Trivium will be based in the Netherlands and will operate 57 production facilities across Europe and the Americas, employing approximately 7,800 people.
Paul Coulson, chairman and CEO, Ardagh, will become chairman of Trivium. Michael Mapes, CEO, Exal, will be CEO.
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.
“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,” said Coulson.
Thanks to the deal, Exal, currently controlled by Ontario Teachers’ Pension Plan Board (Ontario Teachers), will create one of the largest metal packaging companies in the world.
43% stake in Trivium
Upon completion of the transaction, Ardagh will hold a 43% stake in Trivium, with 57% controlled by Ontario Teachers’. Ardagh will also receive approximately $2.5bn in cash proceeds.
Trivium expects to derive net combination benefits of approximately $40m over the next few years, from the pursuit of commercial and operational excellence opportunities.
It will produce a sustainable product range, serving customers in food, seafood, pet food, nutrition, beauty and personal care, household care and premium beverages.
“Trivium establishes a focused global leader at a time when metal packaging is poised to provide a compelling solution to help address the sustainability concerns facing consumers, brand owners, and governments. I’m very excited about Trivium’s prospects for future success,” added Mapes, CEO, Trivium.