Saint-Gobain (CODGF.PK) has reached exclusive talks with the Ardagh Group following the latter’s offer to buy Verallia North America for an enterprise value of $1.69 billion or roughly 1.275 billion euros, representing 6.5 times 2012 EBITDA. The binding and irrevocable offer is not conditional upon financing being arranged. Verallia North America, with $1.62 billion revenue and $171 million operating profit in 2012, is the second largest glass container manufacturer in the U.S., behind Owens-Illinois. The company has 13 plants spread across the country, and employs over 4,400 people.
French building materials company Compagnie de Saint-Gobain would decide whether to accept the offer after the Works Council has been consulted and has given its opinion. The transaction would be subject to authorization by the U.S. anti-trust authorities. If the deal is closed, the sale proceeds would be mainly utilized to strengthen the Group’s balance sheet, whilst pursuing its acquisition policy focused on small or medium sized targets.
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by RTT Staff Writer
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