Ardagh Group’s metal packaging division and Gores Holdings V today announced a definitive business combination agreement under which Gores Holdings V will combine with the metal packaging business (AMP) to create an independent public company. The new company would apply to list on the NYSE under AMBP.
Luxembourg-based Ardagh Group will retain an approximately 80% stake in AMP and receive up to $3.4 billion in cash in the transactions.
The combined company is expected to have an enterprise value of approximately $8.5 billion at closing.
As a first step in the transaction, AMP will raise new debt of approximately $2.65 billion, ($2.3 billion net).
Assuming no share redemptions by stockholders of Gores V, approximately $525 million in cash held in the SPAC’s trust account, together with a $600 million PIPE and approximately $2.3 billion of the new debt will be used to pay up to $3.4 billion in cash to Ardagh, as well as to pay transaction expenses. Read more.
