PACKAGING giant Ardagh Group said it has made a binding offer worth almost $1.7bn (€1.27bn) for a glass packaging operation in the US.
Ardagh is in exclusive talks with French company Saint-Gobain to buy its glass packaging division, Verallia North America.
Ardagh described the offer as binding and irrevocable.
Paul Coulson, Ardagh Group Chairman, said the acquisition would add scale, diversity and value to Ardagh’s global packaging operations.
“The transaction would increase the size of our glass business globally by almost 60pc and be a very significant step in developing our operations in the US. It would result in approximately 40pc of Ardagh Group’s total sales and EBITDA being generated in the US.”
The transaction would have to be signed off by regulators in the US but Ardagh said it is expected to close later in the year.
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.
Ardagh Group, based in Luxembourg, is a global leader in glass and metal packaging solutions, producing packaging for most of the world's leading food, beverage and consumer care brands.
It closed the controversial Ringsend glass bottle site in 2002 – it was later sold for €412m.