Ardagh acquisition to raise US glass industry share to almost a quarter of the market
The deal, which is subject to regulatory approval, is expected to close at the end of August. Ar…The deal, which is subject to regulatory approval, is expected to close at the end of August.
Ardagh said the takeover would increase the size of their glass business by 50% and result in a US glass industry market share of 23%.
Double business size
Paul Coulson, Ardagh chairman, said: “The acquisition of Anchor will increase the size of our glass business by almost 50% and is a very significant step in developing our 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.”
Florida-based Anchor, formerly owned by Wayzata Investment Partners, is the third largest glass container manufacturer in the US producing 5.6 billion containers annually from its eight facilities.
Niall Wall, Ardagh Group CEO, said: "This transaction is very significant in the globalisation of Ardagh’s glass business and follows on from the recent acquisition of Leone Industries in New Jersey.
“Anchor is a technologically advanced business which has developed and manufactured an array of award-winning products for a range of household names in the food and beverage industries.
“We are delighted with the transaction as it places Ardagh in a leading position in the US glass industry with an approximate 23% market share.”
Ardagh purchased glass container manufacturer, Leone Industries, for an undisclosed sum in March this year as the first step for the company in the US glass market.
The Luxembourg-based firm already had a can manufacturing presence in North America with Impress Metals.
Eugene Davis, chairman of Anchor’s Board of Directors, added: "The acquisition of Anchor by Ardagh represents a great day for our company.
“Operating as part of Ardagh will allow Anchor to accelerate its growth plans and offer a global capability to our customers.”
Trading update
The firm also announced a trading update for the quarter ending 30 June, saying revenues are expected to be slightly ahead of the same period in 2011 with increased glass selling prices and contributions from new acquisitions being offset by adverse volumes in the metal, glass and engineering businesses.
EBITDA for the quarter ending compared to the same period in 2011 is expected to be lower by a mid-to-high single digit percentage.
“This is mainly due to reduced metal and glass container volumes, lower engineering volumes (primarily timing in nature), time lags in revenue increases to offset cost inflation and the absence of carbon credit sales being only partially offset by a contribution from acquisitions, cost efficiencies and foreign exchange differences,” said Ardagh.