Compelo Packaging - Latest industry news and analysis is using cookies

ContinueLearn More

Ardagh to acquire Anchor Glass Container for $880m

Glass container manufacturer Ardagh has agreed to acquire US-based Anchor Glass Container from private investment funds managed by Wayzata Investment Partners in a deal worth €721m ($880m).

Ardagh chairman Paul Coulson said the acquisition of Anchor is set to increase the company’s glass business size by almost 50% and is an important step in developing its operations in the US.

"It will result in approximately 25% of Ardagh’s EBITDA being generated in the US. The transaction is an important milestone in the evolution of Ardagh as it will add scale and value to our global packaging franchise," Coulson said.

Ardagh will use the net proceeds from the issuance and sale of the notes to pay the purchase price including costs for the acquisition and to refinance all of the existing indebtedness of Anchor, substantially.

Post completion of the transaction, expected at the end of August 2012, Ardagh will operate 100 facilities in 25 countries and is expected to have global sales exceeding €4.1bn.

Luxembourg-based Ardagh said the company is also set to raise $920m equivalent of debt financing through the issue of $700m equivalent of senior secured notes due 2017 and $220m senior notes due 2020.

Anchor manufactures glass containers and serves the North American food and beverage industries. It has eight facilities in the US and produces about 5.6 billion containers annually from its facilities.