Ardagh aluminium acquisition to boost European output

04-Jan-2012 - Last updated on 04-Jan-2012 at 13:00 GMT

Packaging manufacturer Ardagh intends to expand its European aluminium output by nearly a billion containers a year through its latest European acquisition, the company has announced.

The Ireland-based company intends to continue its commitment to increasing its aluminium packaging production in the European market through an agreed €85m takeover of the Boxal Group - previously part of the Exal Corporation

The Boxal Group, which supplies aerosols and aluminium bottles to food and beverage brands such as Coca-Cola and Heineken, has facilities in France and the Netherlands and a yearly output of over 900m containers.

These will be added to the 13bn already manufactured by Ardagh per annum.

The investment signals the Ardagh’s continued commitment to producing “premium” packaging products such as glass and aluminium, of which it produces a total of 26bn containers a year.

Premium packaging

“At the moment we are satisfying the demand for high end and premium packaging. We see the acquisition not as a move into the premium container market, but as more of an expansion,” Ardagh CEO Niall Wall told FoodProductionDaily.com.

“To date we have not had much involvement in the European market, so we see the acquisition of Boxal as a good opportunity to expand our activities.”

“We already have a lot of experience with aluminium packaging manufacture in Australia and we are just looking to expand this to Europe, and what better way to do it than acquire a market leader in Boxal.”

The Ardagh Group, operates through 88 manufacturing plants across 25 countries, employs 14,000 people and has annual global sales in excess of €3.2bn.

Company revenue has increased 70-fold since 1999 through a series of acquisitions – something Ardagh will continue to pursue, Wall added.

Global acquisitions

The recent acquisition is just one of many made by the Ireland-based packaging giant.

FoodProductionDaily.com reported in December 2010 on Ardagh’s acquisition of metal packaging group Impress.

The €1.7bn deal, which was signed after EU and US authorities approved the takeover, was part of Ardagh’s aim to increase its global reach in emerging food and drink markets.

The 2010 takeover gave Ardagh a presence in markets such as South America, Australasia and China.

“We are pleased to announce the acquisition of Boxal which will assist us in further diversifying into the aluminium can market, enhance our product offering and add value to our current activities,” said Ardagh Group CEO Niall Wall.