Ardagh Metal Packaging to Go Public Through $8.5 Billion PE-Backed SPAC Deal
February 23 2021 - 7:20AM
Dow Jones News
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 dave.sebastian@wsj.com
(END) Dow Jones Newswires
February 23, 2021 07:05 ET (12:05 GMT)
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