Ardagh Group SA acquire assets for 3.42 billion USD from the merging producers of foods and drinks cans Ball Corp and Rexam Plc. According to the deal Ball will sell 17 plants for cans in USA, Europe and Brazil, as well as other factories. The sold assets generated revenues of 3 billion USD in 2015. For acquisition of the 17 plants the company Ardagh will pay 9.1 times earnings before interest, taxes, depreciation and impairments, which amounted to 375 million USD..
The European Commission approved the 4.4 billion GBP (6.4 billion USD) acquisition of Britain’s Rexam by the US Ball, after the company agreed to sell 12 factories across the continent to dispel suspicions of monopoly. Apollo Global Management, Blackstone Group LP and Madison Dearborn Partners were among the bidders for the assets, which could bring 4 billion USD.
Ball expects to complete the acquisition of Rexam until the end of June. Both companies are subcontractors of Coca-Cola and Anheuser-Busch InBev, have over 20% market share. The nearest competitor is Crown Holdings, which has 19%.
Goldman Sachs & Co. advise the company on the sale of assets, while Greenhill & Co is the leading advisor in the acquisition of Rexam.