Ardagh Group has announced that it has entered into an agreement to combine its Food & Specialty Metal Packaging business with Exal Corporation, a leading producer of aluminium containers, to form ‘Trivium Packaging’.
The move will create one of the largest metal packaging companies in the world. Headquartered in the Netherlands, Trivium will operate 57 production facilities, principally across Europe and the Americas, employing approximately 7,800 people.
Projected revenues and Adjusted EBITDA in the twelve months ended March 31, 2019 were $2.7 billion and $469 million respectively.
The combination of the two businesses aims to combine Food & Specialty’s leading presence in Europe and North America, principally focused on tin-plate steel packaging, with Exal’s leadership in aluminium aerosol packaging in the Americas.
Paul Coulson, currently chairman and CEO of Ardagh, will be chairman of Trivium. Michael Mapes, currently CEO of Exal, will be CEO and will lead an experienced team drawn from across both businesses. Upon completion of the transaction, Ardagh will hold a 43 per cent stake in Trivium, with 57 per cent controlled by Ontario Teachers’. Ardagh will also receive approximately $2.5 billion in cash proceeds.
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. Completion is also subject to closing of the debt financing expected to be announced by Trivium later today. The transaction is expected to close in the fourth quarter of 2019.
By Bryony Andrews
The US State of New York is introducing two new bills to combat over-packaging, poor recycling rates and litter issues, including an Extended Producer Responsibility (EPR) program requiring companies such as McDonald’s and Amazon to pay for the cost of packaging disposal and recycling.
The new organization’s mission is to redesign the critical steps of the plastics sorting and recycling system for post-consumer lightweight packaging (LWP) to speed up circularity, born from a need to meet the rising market demand for high-quality recyclates for use in high-end plastic applications.
Starbucks and Hubbub have launched a £1 million (US$1.22 million) “Bring It Back Fund” to increase the uptake of reusable packaging in the F&B industry. The funding will go toward innovative ideas that make it easier for customers to use alternatives to single-use packaging by supporting pilot projects that help shift consumption habits.