Ardagh Group has completed the previously announced acquisition of Anchor Glass Container in the US in a deal worth $880m (€721m).
The glass container manufacturer has secured US regulatory approval for the acquisition of Anchor from private investment funds managed by Wayzata Investment Partners.
Ardagh chairman Paul Coulson had said earlier that the purchase of Anchor would increase the size of the company’s glass business by almost 50%, and added that it was a crucial step in developing its 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," Coulson added.
By operating as part of Ardagh, Anchor can kick-start its growth plans and offer a global capability to its customers.
When the deal was announced in July 2012, Ardagh said it will raise $920m equivalent of debt financing through the issue of $700m equivalent of senior secured notes due 2017 and $220m senior notes due 2020.
The net proceeds from the issuance and sale of the notes are to be used by Ardagh to pay the purchase price for the acquisition and to refinance substantially all of the existing indebtedness of Anchor.
Anchor, which manufactures glass containers for the North American food and beverage industries, produces about 5.6bn containers from its eight facilities and has annual revenues of approximately $800m (€656m).
Image: Ardagh acquired glass container manufacturer in the US Anchor Glass for $880m.