Ardagh said it is looking to borrow more than US$400m to finance two new acquisitions and pay for a third announced earlier this month.
It also served notice that while revenues had held up during the final quarter of 2011, its year-on-year EBITDA had seen a high single digit percentage fall.
Takeovers and debt reduction
The glass and metal packaging giant is currently seeking to raise cash totaling $410m (€529m) through two bond issues and has revealed that part of the cash has been earmarked for the buyout of two new companies.
The funds would also be used cover the €85m purchase of Boxal – an aluminium container manufacturer supplying aerosols and bottles to into the food, beverage, pharmaceutical and cosmetics sectors.
Ardagh declined to give any further details of the double takeover but confirmed that negotiations were well advanced for the companies that operate within current spheres. The Ireland-based company specialises in glass and metal packing, as well as an associated technology arm that supplies services and equipment to these sectors and beyond.
“In addition to the Boxal Acquisition, we are presently in advanced discussions with the relevant vendors for the potential acquisitions of two other unrelated businesses which are active in the sectors in which we operate,” said the company in a statement to FoodProductionDaily.com.
The firm stressed there was no guarantee that any of the transactions would be completed and said that if the deals did fall through the money would be used to cut corporate debt.
Ardagh announced the first bond would be one for $160m at 7.375% due in 2017, with a second at $250m at 9.125% due in 2020.
The company gave a broad outline of its performance in the final three months of 2011 based on internal management estimates.
Revenues were forecast to be “broadly in line” with those in the same period in 2010, it said.
However, it warned that EBITDA was likely to “lower by a high single digit percentage” than Q4 in the previous year.
Capital expenditures for the full year 2011 were said to have dropped by over 10% (“low double digit”) compared to the previous year.
Ardagh employs 14,000 people in 25 countries, operates 88 manufacturing plants and has annual sales of more than €3.2bn.