Ardagh Group has purchased a US manufacturer that will allow them to expand into new markets within the glass industry.
The deal to buy Leone Industries for an undisclosed sum is the first step in the US for the company’s glass packaging segment.
The acquisition will expand their market reach into the US, Canadian, Mexican and Caribbean marketplace, the firm said.
The Luxembourg-based firm already have a can manufacturing presence in North America with Impress Metals, with other sites in American Samoa and Canada.
The takeover will increase the firm’s glass division by 10%, adding to their current European market share of 18%.
Leone Industries, founded in 1966, manufactures more than 500m glass containers per annum for the US food and beverage market.
It is the second purchase by Ardagh this year after they bought aluminium bottle producer Boxal, the European division of Exal, for €85m.
Niall Wall, Ardagh Group CEO told FoodProductionDaily.com the acquisition was an important step in developing the firm’s international glass franchise and will add scale and value to the business.
“We were always interested in the US market and it was always within our sights as it fits within our strategy.
“[Leone] have a good customer base, a state of the art plant and knowledge of the region which will allow us to maximise market output.
“We are always alive to extension of our territory, it is in our DNA, as we grow through our acquisitions.
“It was the perfect opportunity to expand our reach in the glass industry outside Europe and this fitted in with our plans for our glass business.”
The rigid packaging giant in metal and glass solutions includes Coca-Cola, Nestlé, Danone, Unilever and Diageo among its customer-base.
It operates 91 plants in 25 countries, employing 15,000 people with global sales of €3.5bn.