Ardagh to buy Verallia for €1.28bn


Packaging group Ardagh has made an offer to buy glass container manufacturer Verallia North America from Compagnie de Saint-Gobain in a deal worth up to €1.28 billion.

The VNA deal would have to be approved by regulators, and if the sake goes ahead, the deal would close later this year.

The move would allow Ardagh to move into the lucrative wine sector in the US for the first time.

The Indiana headquartered firm, which employs 4,400 people, is the second largest glass container manufacturer in the US, and supplies the North American wine, food and beverage industries.

About 9 billion containers are produced each year at 13 facilities located throughout the US.

VNA's annual revenues total about $1.6 billion (€1.2 billion).

Ardagh Group chairman Paul Coulson said the acquisition would be an important milestone in the group's evolution, adding scale, diversity and value to its global packaging operations.

"The transaction would increase the size of our glass business globally by almost 60 per cent and be a very significant step in developing our operations in the US," he said. "It would result in approximately 40 per cent of Ardagh Group?s total sales and EBITDA being generated in the US.?

The deal will be funded by the issue of $1.45 billion equivalent of debt financing through senior secured notes and senior notes.

The company expects revenues to have risen in the final quarter of 2012, although its metal packaging division is expected to be flat or slightly lower year on year.

Combined EBITDA for the glass and metal packaging businesses is expected to be marginally higher than the same quarter of 2011.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Screen Name Selection


Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.