Ireland’s metal and glass packaging supplier Ardagh Group announced yesterday the formation of Trivium Packaging, a new metal packaging joint venture with Ohio aluminium container producer Exal Corporation.
Per Ardagh, Trivium will be a combination of its Food & Specialty Metal Packaging business with Exal, which is controlled by Ontario Teachers’ Pension Plan Board. The new joint venture will be headquartered in the Netherlands and will be among the most prolific metal packaging companies on Earth.
Upon its formation, Trivium will operate almost five dozen production facilities in Europe and the Americas, with a combined workforce of about 7,800 individuals. The new venture is expected to derive net combination benefits of roughly US$40 million over the next several years thanks to a wide variety of expected opportunities for commercial and operational excellence.
“Ardagh is delighted to partner with Ontario Teachers’ as shareholders in Trivium, a combination of two highly complementary and well-invested businesses,” explained Trivium’s incoming chairman and current Ardagh CEO Paul Coulson. “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.”
Ontario Teachers’ Executive Managing Director of Equities Jane Rowe said the new venture enters a situation primed for success.
“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.”
“I am honoured to lead Trivium, which combines two great organizations with a history of customer service and innovation derived from exceptional people and long-term customer relationships,” said Trivium’s new CEO Michael Mapes. “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.”
Ardagh said the deal still must pass regulatory muster and other typical financial hurdles. However, the firm expects the deal to close by year’s end.