Ardagh and Exal combine to form Trivium

Image: Ardagh

Ardagh will combine its Food & Specialty Metal Packaging business with Exal Corporation, a producer of aluminum containers, to form Trivium Packaging.

The combination of Food & Specialty with Exal will create one of the largest metal packaging companies in the world. Trivium will be headquartered in the Netherlands and will operate 57 production facilities, principally across Europe and the Americas, employing approximately 7,800 people.

Trivium will produce an extensive and sustainable product range, backed by dedicated research and development resources, underpinning the businesses’ reputation for customer service, quality and innovation. The company will serve a diverse range of leading multinational, regional and local customers operating in a wide array of end markets, including food, seafood, pet food, nutrition, beauty and personal care, household care and premium beverages.

Paul Coulson, chairman and CEO of Ardagh, will be chairman of Trivium. Michael Mapes, CEO of Exal, will be CEO and will lead a highly experienced team drawn from across both businesses. Upon completion of the transaction, Ardagh will hold a 43% stake in Trivium, with 57% controlled by Ontario Teachers’, who control Exal.

Paul Coulson, chairman and CEO of Ardagh and chairman of Trivium said: “Ardagh is delighted to partner with Ontario Teachers’ as shareholders in Trivium, a combination of two highly complementary and well-invested businesses. Trivium has the products, customers, innovation capabilities and leadership team to deliver continued growth and success, as brand owners and consumers increasingly seek sustainable packaging solutions.”

Jane Rowe, executive managing director, equities, Ontario Teachers’ said: “In forming Trivium we are bringing together two leading businesses to create a global packaging company that is well-positioned to capitalise on current market trends. We are pleased to establish a partnership with Ardagh and believe our alignment on long-term value creation will be a critical driver for future success of the enterprise.”

Michael Mapes, CEO of Trivium said: “I am honoured to lead Trivium, which combines two great organisations with a history of customer service and innovation derived from exceptional people and long-term customer relationships. Trivium establishes a focused global leader at a time when metal packaging is poised to provide a compelling solution to help address the sustainability concerns facing consumers, brand owners, and governments. I’m very excited about Trivium’s prospects for future success.”

Pro forma revenues and adjusted EBITDA in the 12 months ended March 31, 2019 were $2.7 billion and $469 million respectively. In addition, Trivium expects to derive net combination benefits of approximately $40 million over the next few years, from the pursuit of commercial and operational excellence opportunities.

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