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Ardagh acquires Anchor Glass for $880m

Ardagh Group has secured US regulatory approval and completed the previously announced acquisition of Anchor Glass Container in the US for $880m (€721m) from private investment funds managed by Wayzata Investment Partners.

The deal was originally announced in July 2012 and the purchase of Anchor gives Ardagh a significant increase in scale in the US food-packaging market ahead of a planned flotation in the country.

Earlier Ardagh announced that it will raise $920m equivalent of debt financing through the issue of $700m equivalent of senior secured notes due 2017 and $220m senior notes due 2020.

The company planned to use the net proceeds from the issuance and sale of the notes to pay the purchase price for the acquisition and to refinance substantially all of the existing indebtedness of Anchor.

Anchor manufactures glass containers and serves the North American food and beverage industries. It produces about 5.6 billion containers annually from its eight facilities and has annual revenues of about $800m (€656m).