Verallia deal helps increase Ardagh group revenue by 28%

Ardagh Group reported revenue of €1.281 billion in the second quarter of 2014 - an increase of 28% over the same period in 2013.

In its half-year financial report it confirmed the acquisition of Verallia North America (VNA) closed on 11 April 2014 and the subsequent Anchor glass sale went through on 30 June 2014.

It added that the acquisition of VNA was strategically important: it further expands its glass manufacturing footprint in North America, strengthens the existing relationships with global customers and develops its product portfolio.

It also provides opportunities for logistics savings, production improvements and cost efficiencies.

From the date the acquisition closed, VNA contributed revenue of €269 million and EBITDA of €49 million to Ardagh’s results for the six months ended 30 June 2014.

VNA, which has its headquarters in Muncie, Indiana, is the second largest glass container manufacturer in the US, serving the North American food and beverage industries. It produces approximately nine billion containers annually from its 13 facilities located throughout the United States and employs 4,400 people.

VNA has annual revenues of approximately $1.6 billion (€1.2 billion).

In its outlook, Ardagh said near-term forecasts for economic growth are mixed. Most European economies are expected to remain relatively subdued, while the US economy rebounded in the second quarter after a weather-impacted downturn in the first quarter of 2014.

It added that the integration of VNA is in line with expectation and is a major focus.

In the financial report it said the Glass division’s pro forma revenue of €728 million for the quarter was consistent with the prior year.

European Glass revenue of €356 million in the second quarter was 4% above the prior year reflecting a strong performance in the beer sector.

Ardagh´s clients include brewers such as Inbev, owner of Budweiser, Coca Cola and John West. It has its roots in the old Irish Glass Bottle business, which was founded in 1932 and has a large number of Irish shareholders, including its chairman Paul Coulson who owns more than 30% of the business.