Packaging group Ardagh unveils new boss and details €3bn spend
Luxembourg-based Ardagh — which has its roots in Irish Glass — had been linked with assets having to be offloaded to allow for the merger of the US businesses for some weeks.
It yesterday launched a bond offering aimed at raising $2.85bn in fresh debt to cover the bulk of the consideration.
Ardagh is not currently a manufacturer of beverage cans but this deal will catapult it to third largest global player in the sub-sector.
The deal is reliant on regulatory approval and the closing of the Ball/Rexam deal, and is due to complete by the end of June.
The deal will land Ardagh 12 manufacturing and support plants in the US, Europe and Brazil.
Coinciding with that news, Ardagh announced yesterday that Niall Wall — the group’s chief executive of the past ten years — is to step down in September.
He will be replaced by Ian Curley, who recently left the post of chief financial officer at Smurfit Kappa Group after 16 years.
Mr Curley will join Ardagh as chief executive designate in June and take the helm in September.
Ardagh also yesterday reported first quarter earnings, bringing the publication of the figures forward to tie-in with the acquisition announcement.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 6%, year-on-year, at €217m — with the glass division growing earnings by 6% to €148m and the metal packaging arm up by 8% at €69m.
Ardagh has shelved plans to float the metals division, known as Oressa, but group chairman Paul Coulson recently told investors that while no progress has been made on the issue, the group still intends to carry out the share sale — which could raise up to €2bn — at some point.
Ardagh’s overall group revenue, for the first quarter, came to almost €1.22bn, ahead by 1% on an annualised basis.
The Ball/Rexam assets had combined sales, last year, of $3bn.
