Building materials distributor Saint-Gobain has agreed to sell glass container manufacturer Verallia North America to the Ardagh Group for €1.3 billion (US$1.7 billion), representing 6.5 times 2012 EBITDA.
With revenues of $1.6 million in 2012, Verallia North America is the second largest glass container manufacturer in the U.S., behind Owens-Illinois. The company has 13 plants in the U.S. and employs more than 4,400 people.
Sale proceeds will be used mainly to strengthen the group’s balance sheet while pursuing its acquisition policy focused on small- or medium-sized targets.
To support Saint-Gobain's organic growth, the company has announced its intention to open an asphalt roofing shingle plant in the Midwestern U.S. The new facility, which will be Saint-Gobain manufacturer CertainTeed's 11th asphalt shingle plant in the U.S., is expected to cost $100 million.