Ardagh Glass Group have announced that it has agreed to acquire Rexam plc's entire glass container manufacturing division for Euros 660M on a debt free/cash basis. The transaction is subject to competition authority approvals in Germany & Poland. In 2006, Rexam's glass division reported sales of Euros 642M and EBITDA of Euros 116M. The business operates 13 glass plants in Denmark, Germany, Holland, Poland & Sweden, with around 3600 employees. Ardagh currently operates 9 plants in Germany, Italy, Poland & the UK, with around 3300 people. Post acquisition, the enlarged Ardagh group will have annual sales of around Euros 1.25BN and will operate 22 glass plants in 7 countries. Paul Coulson, Ardagh's Chairman said: "Following the acquisition, Ardagh will double in size & become the No 3 glass container manufacturer in Europe, with around 18% of the market." The acquisition will provide us with opportunities to achieve greater operating efficiencies & to further develop our customer relationships."
