Packaging firm Ardaghis is close to finalising its €3bn acquisition of Verallia, the glass packaging unit of manufacturing company Saint Gobain.
Saint Gobain has been considering the sale of Verallia as part of the reorganisation of its business portfolio.
Verallia employs 10,000 people and operates manufacturing plants in 13 countries.
Headquartered in France, Verallia manufactures and supplies glass bottles and jars for the food and beverage industries worldwide. It also manufactures a range of stock containers.
Verallia generated €2.435bn in annual sales for 2013.
Besides Ardagh, several other international private equity giants have expressed interest in the acquisition of Verallia, as reported by The Independent.
The first round bids for the unit were submitted last week and a short-list of potential buyers will be out next week. Ardagh’s acquisition of Verallia is not certain. However, it is likely to be the key contender.
Last year, Ardagh acquired Verallia’s division in the US for €1bn after a battle with the US Federal Trade Commission over competition concerns.
In addition, Ardagh also announced plans for a stock market flotation of its metal containers business later this year that could be valued at approximately €2bn under such an initial public offering. The company intends to retain majority control.
The proceeds from the deal will be used to either reduce its €4.7bn debt or to sponsor further acquisitions.
Image: Verallia manufactures and supplies glass bottles and jars for the food and beverage industries. Photo: courtesy of Verallia.