Niall Wall, Ardagh CEO, told FoodProductionDaily.com that while Ardagh had a strong hold in Europe, it was a mature market where there were limited growth opportunities.
The CEO explained that by acquiring Impress, Ardagh will give the company a presence in major new markets such as South America, Australasia and China.
The €1.7bn deal between global metal packaging group Impress and Ardagh Glass was signed this Monday after gaining approval from both European and US regulatory authorities.
The enlarged and diversified global packaging business will be known as Ardagh Group.
The combined business will operate 81 facilities and hold either number one or number two positions in nearly all its served markets across 24 countries.
The group will employ approximately 14,000 people and have annual revenues of over €3bn.
In terms of rationalisation, although Wall didn’t rule out the possibility of job cuts or closures, he maintained that anything that did happen would be “at the margins”.
“Rationalisation is not the synergy for this acquisition, but we will continue to be competitive,” he said.
Wall said that with 60 per cent of combined revenues coming from the food sector, the company was looking to expand further into this area.
According to the CEO, Armagh has always been a company very much focused on expansion, growing 70 times in size since 1998 and five times in size since 2006.
“This acquisition doesn’t mark the end of the process, it is simply a continuing step in that path,” said Wall.
Ardagh Glass is currently the third largest glass packaging manufacturer in Europe producing glass containers, including glass bottles and jars, as well as forming and inspecting machines.
Impress is a global metal packaging company producing products, including metal cans, mainly destined for processed food and specialties such as aerosols, paintings and coatings.
The company has a presence in 22 countries across five continents and is a major player in the European, North American and Australasian markets.
Wall said the acquisition of Impress was “a new exciting step” for the company.