Saint-Gobain has agreed to sell its glass packaging division to a New York-based private equity firm, media reports have suggested.
Apollo Global Management are thought to have beaten competition from four other bidders with its bid of nearly €2.95bn. Verallia manufactures glass bottles for the champagne and cognac industries, operating 47 plants in 13 different countries and producing approximately 15bn bottles and jars per year. It turned over €2.4bn last year, according to the company’s own figures.
Saint-Gobain is believed to have preferred Apollo’s bid because of its support for Verallia’s industrial project and its intentions for the business’ existing workforce. Saint-Gobain is selling the division to focus on other areas of its operations, and has already relinquished control of Verallia’s North American division. The deal will be finalised before the end of this year.
Saint-Gobain chief executive Pierre-André de Chalendar said: “The sale of Verallia would complete Saint-Gobain’s strategic refocus on the design, manufacture and distribution of innovative, high-performance solutions for the habitat and industrial markets, on which the group continues to develop.”
In a joint statement, Apollo senior partner Robert Seminara and operating executive Jean-Luc Allavena added: “We are extremely excited to be acquiring Verallia, which is an outstanding franchise and one of the world’s leading packaging companies. We look forward to partnering with [its] management and its tremendous employee base to support the continued growth and innovation of Verallia.”
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