Ardagh Group, a global leader in glass and metal packaging solutions with origins in Ireland and based in Luxembourg, yesterday announced that it has made a binding and irrevocable offer and entered into exclusive negotiations with Compagnie de Saint-Gobain to purchase Verallia North America (VNA) in a transaction worth €1.275 billion. The transaction is subject to US regulatory approval and would be expected to close later this year.
VNA, which has its headquarters in Muncie, Indiana, is the second largest glass container manufacturer in the US, serving the North American wine, food and beverage industries. It produces approximately 9 billion containers annually from its 13 facilities located throughout the United States and employs approximately 4,400 people. VNA has annual revenues of approximately US$1.6 billion (€1.2 billion).
Paul Coulson, Ardagh Group Chairman, commented “The acquisition of Verallia North America would be another important milestone in the evolution of Ardagh as it would add scale, diversity and value to our global packaging operations. The transaction would increase the size of our glass business globally by almost 60% and be a very significant step in developing our operations in the US. It would result in approximately 40% of Ardagh Group’s total sales and EBITDA being generated in the US.”
Niall Wall, Ardagh Group CEO, commented “We are delighted with the prospect of completing this transaction as VNA is a very innovative business that would allow us to expand our glass operations into the very important wine sector in the US for the first time. It represents an excellent opportunity to provide our US customers with enhanced competitiveness and improved levels of service through the achievement of greater operational efficiencies.” Ardagh also announced that it will raise, partly in euro and partly in US dollars, a total of US$1.45 billion equivalent of debt financing through the issue of Senior Secured Notes and Senior Notes. The proceeds from the issuance and sale of the Notes would be used to pay the cash consideration for the acquisition and certain costs.
About Ardagh Group S.A.
Ardagh Group is a leading packaging business operating 100 facilities producing glass and metal packaging solutions for most of the world's leading food, beverage and consumer care brands across 25 countries, with its corporate headquarters located in Luxembourg. The group employs 17,700 people, produces in the region of 26.6 billion containers a year and hold number 1 or 2 positions in all markets served worldwide. The group started out as the Irish Glass Bottle Company in 1932. Ardagh’s customers include: AB InBev, Heineken, Diageo, Pernod Ricard, Bacardi Martini, Heinz, Nestle, Kraft, Danone, Unilever, Procter & Gamble, L’Oreal, Snapple, Coca Cola, Del Monte and many more international brands.