Ardagh Group SA announced it will spin off its metal packaging business through a merger that values the new company at $8.5 million with a listed blank-check firm backed by billionaire Alec Gores.

WHO: Ardagh Group is a Luxembourg-based global packaging group servicing the food, beverage, pharmaceutical, and personal care markets operating 56 metal and glass production facilities in 12 countries with more than 16,000 people.

Alec Gores is the founder of private equity firm Gores Group LLC, one of the United States’ most prolific SPAC dealmakers, and has raised billions so far through multiple blank-check companies.

DETAILS:

• Ardagh Group SA announced it will spin off its metal packaging business with a listed blank-check firm backed by billionaire Alec Gores.
• The deal with Gores Holdings V will provide a capital infusion of $3.4 billion to the spun-off company, financed by a combination of $2.3 billion of new debt, $600 million from new investors, and the capital raised in Gores Holding V’s initial public offering of shares last year.
• Ardagh will retain a roughly 80% stake in the company after the deal.