Ardagh Group (www.ardaghgroup.com), a global leader in glass and metal packaging solutions, today announced that it has now entered into a definitive share purchase agreement with Compagnie de Saint-Gobain to purchase from it the entire issued share capital of Verallia North America (“VNA”) in a transaction involving total consideration of approximately US$1.7 billion (€1.275 billion). The transaction is subject to US regulatory approval and is expected to close later this year.
Ardagh also announced that it has successfully raised a total of (1) US$1,270 million, through the issue of US$420 million 4⅞% Senior Secured Notes and US$850 million 7% Senior Notes, and (2) €250 million, through the issue of euro denominated 5% Senior Secured Notes. The proceeds from the issue and sale of the Notes will be used to pay the cash consideration for the acquisition and certain costs and for general corporate purposes, including repayment of existing debt.
VNA, which has its headquarters in Muncie, Indiana, is the second largest glass container manufacturer in the US, serving the North American wine, food and beverage industries. It produces approximately 9 billion containers annually from its 13 facilities located throughout the United States and employs approximately 4,400 people. VNA has annual revenues of approximately US$1.6 billion (€1.2 billion).