Ardagh closes in on Saint Gobain’s glass packaging unit for €3bn

Friday, Apr 17, 2015

Packaging company Ardagh is almost said to have completed its €3bn acquisition of the glass packaging unit of Saint Gobain.

Saint Gobain has been considering the sale of Verallia to focus on higher-margin home and construction products.

Verallia makes containers for brands including Nutella and Dom Perignon Champagne.

The Independent reported that the first round bids for the unit were submitted last week and a short-list of potential buyers will be drafted by next week.

Ardagh had recently purchased Verallia's division in the US last year for €1bn following a lengthy battle with the US Federal Trade Commission, which had voiced competition concerns.

Following the battle, the company was forced to agree to a number of concessions, including the sale of some US plants, to fix the deal.

That was said to be Ardagh's second biggest acquisition following the €1.7bn acquisition of Impress in 2010 that had been divested by private equity group Doughty Hanson.

Saint Gobain was also considering buying a controlling stake in construction chemicals group Sika for around €2.3bn ($2.83bn), the announcement for which had been made in December 2014.

Recently, Ardagh also announced that it is considering a stock market flotation of its metal containers business later this year that could be valued at around €2bn under such an initial public offering (IPO).

The company wants to retain majority control of the metals container division and will use the proceeds to either reduce its €4.7bn debt or to sponsor further acquisitions.

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