Ardagh Group Announces Acquisition of Anchor Glass

This transaction is very significant in the globalisation of Ardagh’s glass business and follows on from the recent acquisition of Leone Industries in New Jersey.

20 Jul 2012 --- Ardagh Group, a global leader in glass and metal packaging solutions, announced that it has agreed to acquire US-based Anchor Glass Container Corporation from private investment funds managed by Wayzata Investment Partners LLC in a transaction involving total cash consideration of US $880 million (€721 million). The transaction is subject to US regulatory approval and other customary closing conditions and is expected to close at the end of August 2012.

Anchor, which is headquartered in Tampa, Florida, is a technologically advanced manufacturer of glass containers serving the North American food and beverage industries. Anchor is the third largest glass container manufacturer in the US. It produces approximately 5.6 billion containers annually from its eight facilities located in the United States and employs approximately 2,700 people. Anchor has annual revenues of approximately US $800 million (€ 656 million).

Paul Coulson, Ardagh Chairman, commented:

“The acquisition of Anchor will increase the size of our glass business by almost 50% and is a very significant step in developing our 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.”

Niall Wall, Ardagh Group CEO, added:

"This transaction is very significant in the globalisation of Ardagh’s glass business and follows on from the recent acquisition of Leone Industries in New Jersey. Anchor is a technologically advanced business which has developed and manufactured an array of award-winning products for a range of household names in the food and beverage industries. We are delighted with the transaction as it places Ardagh in a leading position in the US glass industry with an approximate 23% market share.”

Eugene Davis, Chairman of Anchor’s Board of Directors, stated:

"The acquisition of Anchor by Ardagh represents a great day for our company. Operating as part of Ardagh will allow Anchor to accelerate its growth plans and offer a global capability to our customers. Wayzata Investment Partners led Anchor through its restructuring, turnaround and a period of record earnings growth, but the majority of the credit goes to the outstanding team at Anchor."

Ardagh also announced that it will raise US $920 million equivalent of debt financing through the issue of US $700 million equivalent of senior secured notes due 2017 (part in euro and part in US dollars) and US $220 million senior notes due 2020. The net proceeds from the issuance and sale of the notes will be used to pay the purchase price (including costs) for the acquisition and to refinance substantially all of the existing indebtedness of Anchor.

Ardagh is committed to raising equity as soon as practicable following the closing of the transaction and intends, subject to market conditions, to seek a public listing.