THE WHAT? Ardagh Group has announced that it is set to spin off its metal packaging unit, which will then be combined with Gores Holdings to create an independent public company.
THE DETAILS Ardagh will retain an 80 percent stake in the new Ardagh Metal Packaging company, and receive some US$3.4 billion in cash under the terms of the deal. Oliver Graham, CEO of Ardagh Metal Beverage, has been named CEO of the new company, while COO Shaun Murphy will serve as Vice Chairman.
THE WHY? “Ardagh Metal Packaging is benefiting from long-term megatrends, including sustainability and changing consumer preferences,” said Paul Coulson, Chairman and CEO of Ardagh. “The business has grown significantly since our acquisition of the metal beverage packaging business in 2016 and we have a clear roadmap that we believe will lead us to more than double Adjusted EBITDA by 2024, as we invest in support of our customers’ growth. We are delighted to partner with Gores Holdings to create a NYSE-listed pureplay beverage can business of scale with impeccable ESG credentials, and we intend to remain a committed, long-term majority shareholder of AMP as it continues its growth journey.”