Metal beverage and glass packaging supplier Ardagh has signed a definitive business combination agreement with special purpose acquisition company Gores Holdings V.

As part of the agreement terms, Gores Holdings V will merge with Ardagh’s metal packaging business to form an independent public company.

The newly formed entity Ardagh Metal Packaging (AMP) could have a post-transaction enterprise value of nearly $8.5bn.

AMP will list its shares on the New York Stock Exchange (NYSE) under the new ticker symbol “AMBP”.

Ardagh chairman and CEO Paul Coulson said: “Ardagh Metal Packaging is benefiting from long-term megatrends, including sustainability and changing consumer preferences.

“The business has grown significantly since our acquisition of the metal beverage packaging business in 2016 and we have a clear roadmap that we believe will lead us to more than double Adjusted EBITDA by 2024, as we invest in support of our customers’ growth.

“We are delighted to partner with Gores Holdings V to create an NYSE-listed pure-play beverage can business of scale with impeccable ESG credentials, and we intend to remain a committed, long-term majority shareholder of AMP as it continues its growth journey.”

Ardagh will receive up to $3.4bn in cash for the transaction. The company will retain an approximately 80% stake in AMP.

Ardagh Metal Beverage CEO will be CEO of AMP, while Paul Coulson will serve as Chairman.

Besides holding 80% in AMP, Ardagh will continue to hold 100% ownership in its glass packaging business, as well as its 42% stake in Trivium Packaging.