Glass bottle and metal container firm Ardagh has agreed a deal to combine its good and speciality metal packaging business with the business of Exal Corporation, a big producer of aluminium containers.
The two companies have agreed to form Trivium Packaging, which will be one of the largest metal packaging companies in the world.
Trivium will be headquartered in the Netherlands and will operate 57 production facilities, mainly in Europe and the Americas, and will employ about 7,800 people.
Ardagh said that Trivium will serve a diverse range of multinational and regional 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 chief executive of Ardagh, will be chairman of Trivium. Michael Mapes, CEO of Exal, will be the new company's CEO.
When the deal is complete, Ardagh will hold a 43% stake in Trivium, with 57% controlled by Ontario Teachers' Pension Plan Board.
Ardagh will also receive approximately $2.5 billion in cash proceeds.
The deal, which is still subject to regulatory approval, is expected to close in the fourth quarter of 2019.
Paul Coulson said that Trivium will have the products, customers, innovation capabilities and leadership team to deliver continued growth and success, as brand owners and consumers increasingly seek sustainable packaging solutions.