Irish packaging manufacturer Ardagh Group has announced plans to borrow $410m (€322m) senior bonds to help fund three acquisitions.
The firm seeks to raise $160m in additional borrowing on a bond due in 2017, which was issued in 2010, and a further $250m on a new bond maturing in 2020.
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Ardagh said that should any acquisition not work out, then the proceeds would go towards repaying debt or for other purposes. The borrowing will provide necessary capital for the company’s recently announced €85m acquisition of aluminium can producer Boxal, the European division of Exal.
Ardagh will acquire two aluminium can plants in France and the Netherlands, as well as Exal’s share in a slug-making, aluminium stamped disc joint venture in France and its Hungarian business, Boxal Hungary.
The funds will also pay for the purchase of two businesses not connected to Boxal, which have not yet been made public by Ardagh.
Acccording to the company, revenue for the final quarter of last year would be in line with the same period in 2010, while underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) would fall by a high single-digit percentage.
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By GlobalDataArdagh operates 88 production facilities in 25 countries around the world, with annual sales of more than €3.2bn. It supplies packaging material to AB InBev, Coca-Cola, Del Monte Foods, Diageo and Heineken.
