Ardagh Group and Gores Holdings V create combined company for NYSE listing

Ardagh Group and Gores Holdings V create combined company for NYSE listing

Ardagh Group SA, a global supplier of glass and metal beverage containers and Gores Holdings V, Inc, a special purpose acquisition company sponsored by an affiliate of The Gores Group, recently announced the execution of a definitive business combination agreement in which Gores Holdings V will combine with Ardagh’s metal packaging business to be held by Ardagh Metal Packaging SA to create an independent public company.

The combined company intends to file to list its shares on the New York Stock Exchange and is expected to have a post-transaction enterprise value of approximately $8.5 billion.

The business combination includes up to $525 million in cash from Gores Holdings V and a $600 million private placement led by top-tier investors. Ardagh Group will retain approximately 80% interest in Ardagh Metal Packaging and will receive up to $3.4 billion in cash.

“Ardagh Metal Packaging is benefiting from long-term megatrends, including sustainability and changing consumer preferences,” said Paul Coulson, president and CEO of Ardagh, according to a group press release.

Ardagh Group has a growth trajectory underpinned by long-term customer contracts and expects to double adjusted EBITDA from $545 million in 2020 to more than $1.1 billion in 2024. Alec Gores, Chairman and CEO of The Gores Group and Chairman of Gores Holdings V, said: “Ardagh Metal Packaging has cemented its position as a clear leader in sustainability. The company has an entrepreneurial owner-manager culture that has led to a successful transformation.

With a compelling financial profile and a clear growth trajectory, we believe AMP can continue to lead and look forward to partnering with Paul Coulson and the team as they continue to execute a targeted expansion strategy backed by highly visible market demand and a strong track record of disciplined and efficient capital deployment.”