Skip to Content
Global News Select

Ardagh Metal Packaging to Go Public Through $8.5 Billion PE-Backed SPAC Deal

By Dave Sebastian


The metal-packaging business of Ardagh Group SA, a supplier of recyclable metal beverage and glass packaging, is going public through a combination with a private-equity-backed special-purpose acquisition company, the companies said, a deal that gives the combined entity a roughly $8.5 billion enterprise value.

The combination is with Gores Holdings V Inc., which is sponsored by an affiliate of Gores Group. The deal will bring public a can producer with presence in the Americas and Europe that targets environmentally conscious consumers.

Ardagh will keep a roughly 80% stake in Ardagh Metal Packaging SA and get up to $3.4 billion in cash in the transactions, the companies said Tuesday. Investors in a private placement will hold about 10%, while Gores Holdings V's shareholders and sponsor will hold the rest, the companies added.

Ardagh Metal Beverage Chief Executive Oliver Graham will continue leading the business as CEO, the companies said. Ardagh Chairman and CEO Paul Coulson will become the combined entity's chairman, and Ardagh Chief Operating Officer Shaun Murphy will become vice chairman, the companies added.

Also known as blank-check companies, SPACs raise money in an IPO and then look for a business to combine with in a deal that gives the target an alternative route to the public markets.

Additional investors have committed to buy 60 million shares of Ardagh Metal Packaging for $600 million in a private placement, the companies said. The deal also includes up to $525 million in cash from Gores Holdings V's trust account, the companies added.

The business will raise new debt of about $2.65 billion as a first step in the transaction, the companies said.

The companies said they expect Luxembourg-based Ardagh to double its adjusted earnings before interest, taxes, depreciation and amortization to more than $1.1 billion in 2024 from $545 million in 2020.

"Ardagh Metal Packaging is benefiting from long-term megatrends, including sustainability and changing consumer preferences," Mr. Coulson said.

The companies expect the deal to close in the second quarter. Ardagh will keep all ownership of its glass-packaging business as well as its 42% stake in Trivium Packaging BV, the companies said. Ardagh will use cash proceeds from the transactions to reduce its net debt, they added.


Write to Dave Sebastian at


(END) Dow Jones Newswires

February 23, 2021 07:05 ET (12:05 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.