July 23, 2014 at 2:10 p.m.
Verallia sale now complete
Ardagh to take over ownership
Ardagh Group completed its acquisition of Verallia North America on Friday, thanks to approval of a consent order from the Federal Trade Commission.
Completion of the deal comes 15 months after Paris-based Saint-Gobain agreed to sell Verallia for $1.7 billion. Verallia operates a glass container facility in Dunkirk.
FTC’s concerns that the deal would result in one company controlling too much of the glass container industry in the U.S. slowed the acquisition and prompted an anti-trust complaint.
To satisfy those concerns, Ardagh Group announced today it has entered into a definitive agreement to sell six former Anchor Glass plants, together with certain related assets, to an affiliate of KPS Capital Partners LP.
Ardagh proposed the sale of those plants in September as a way of assuring that the deal would not be anti-competitive for the glass bottle industry.
The sale of the six former Anchor plants is also subject to FTC approval. The company did not disclose the location of the six plants being sold.
Following the acquisition of Verallia, Ardagh’s North America Glass Division is expected to generate annual revenues of about $2 billion from 16 glass-manufacturing plants, including the Dunkirk facility. The division will employ about 5,000 people.
Globally, Ardagh Group will operate more than 100 locations in 24 countries, employing 20,000 people and generating global sales of $6.5 billion.
The Dunkirk plant already serves some of its customers, including AB InBev, parent company of Budweiser. It produces about 2.5 million longneck beer bottles for Budweiser per day, and has been the focus of significant capital investment by Saint-Gobain over the past 15 years.
Saint-Gobain had been attempting to spin off Verallia North America for a few years, finding the glass container business did not mesh well with its primary focus on building materials and sheet glass.
Ardagh was founded in Dublin, Ireland, in 1932 as the Irish Glass Bottle Company. It bought Anchor Glass Container Corp. in 2012, making it the third-largest glass container company in the U.S.
Ardagh, pronounced “ard ath” with an emphasis on the second syllable, is an Irish word meaning “high field.”[[In-content Ad]]
Completion of the deal comes 15 months after Paris-based Saint-Gobain agreed to sell Verallia for $1.7 billion. Verallia operates a glass container facility in Dunkirk.
FTC’s concerns that the deal would result in one company controlling too much of the glass container industry in the U.S. slowed the acquisition and prompted an anti-trust complaint.
To satisfy those concerns, Ardagh Group announced today it has entered into a definitive agreement to sell six former Anchor Glass plants, together with certain related assets, to an affiliate of KPS Capital Partners LP.
Ardagh proposed the sale of those plants in September as a way of assuring that the deal would not be anti-competitive for the glass bottle industry.
The sale of the six former Anchor plants is also subject to FTC approval. The company did not disclose the location of the six plants being sold.
Following the acquisition of Verallia, Ardagh’s North America Glass Division is expected to generate annual revenues of about $2 billion from 16 glass-manufacturing plants, including the Dunkirk facility. The division will employ about 5,000 people.
Globally, Ardagh Group will operate more than 100 locations in 24 countries, employing 20,000 people and generating global sales of $6.5 billion.
The Dunkirk plant already serves some of its customers, including AB InBev, parent company of Budweiser. It produces about 2.5 million longneck beer bottles for Budweiser per day, and has been the focus of significant capital investment by Saint-Gobain over the past 15 years.
Saint-Gobain had been attempting to spin off Verallia North America for a few years, finding the glass container business did not mesh well with its primary focus on building materials and sheet glass.
Ardagh was founded in Dublin, Ireland, in 1932 as the Irish Glass Bottle Company. It bought Anchor Glass Container Corp. in 2012, making it the third-largest glass container company in the U.S.
Ardagh, pronounced “ard ath” with an emphasis on the second syllable, is an Irish word meaning “high field.”[[In-content Ad]]
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