“The acquisition will provide us with opportunities to achieve greater operating efficiencies and to further develop our customer relationships,” Coulson says.
The transaction, announced on March 12, is subject to competition authority approvals in Germany and Poland. In 2006 Rexam's glass division reported sales of €642m and EBITDA of €116m. The business operates 13 glass plants in Denmark, Germany, Holland, Poland and Sweden and employs 3,600. Ardagh currently operates nine glass plants in Germany, Italy, Poland and the UK and employs 3,300 people. Post-acquisition Ardagh will have annual sales of approximately €1.25bn and will operate 22 glass plants in seven countries.
Rexam says the decision to sell follows a review of the glass business within the group's packaging portfolio and is consistent with its strategy of focusing investment on organic growth and acquisitions in higher growth and emerging markets.
Commenting on the sale, Leslie Van de Walle, Rexam's ceo, says: “Rexam Glass is a strong, well-run operation and will fit with Ardagh, a dedicated player in glass Rexam's strategy remains to focus on profitable growth in its core Beverage Can and Plastic Packaging businesses. We have a strong track record of achieving high rates of return on our investment and the proceeds from this sale provide the financial flexibility to generate attractive long-term returns for our shareholders.”
