Ardagh buys stake in Polish firm
The company, which was taken private by chairman Paul Coulson two years ago, said it had bought 82.4% of the shares in Huta Szkla Ujscie (HSU).
HSU operates one glass plant with three furnaces at Ujscie, near Poznan in the western region of Poland and has approximately 13% of Polish glass container production.
Ardagh said HSU has annual turnover of €23m and earnings before interest, tax, depreciation and amortisation of €3.7m.
It employs 480 people in its glass and ancillary activities.
Mr Coulson said in a letter to shareholders that the acquisition will be funded out of Ardagh's cash resources.
HSU is a leading producer of green and amber bottles in Poland and is a key supplier to major Polish breweries controlled by Carlsberg and Heineken.
This is the first Polish investment undertaken by Ardagh and goes to underline the company's belief in the future growth potential of the Polish glass container market.
"Ardagh views Poland as a strategic gateway market that will assist its ambitions to expand its operations into Eastern Europe and beyond," Mr Coulson said.
The acquisition is still subject to getting the formal approval of the Polish competition authorities and Ardagh expects that the deal will be complete before the end of July.
Mr Coulson added that he expects to acquire the remaining 17.6% of HSU shares over the next few months.
Ardagh Glass Limited is a private company registered in Jersey. It was split off from Ardagh Plc following a demerger of the business last year.
Shareholders in Ardagh have shares in both business.
The Dublin-listed company, Ardagh Glass Limited earlier this year reported that turnover from its glass manufacturing businesses in Britain and in Europe had risen to €65.6m from €11.8m in 2003 on turnover up 48% to €428.1m.
