Ardagh buys into Poland

Ardagh Glass Ltd plans to buy more than 80 per cent of a Polish manufacturer for €8 million, the company announced yesterday.

Chairman Mr Paul Coulson told shareholders yesterday that Ardagh has agreed to buy 82.4 per cent of Polish glass container manufacturer Huta Szkla Ujscie (HSU).

Mr Coulson said that Poznan-based HSU has a turnover of €23 million a year and earnings before interest, tax and amortisation of €3.7 million. It currently has net debts of €5 million.

The company has 13 per cent of Poland's glass container production and supplies Carlsberg and Heineken-controlled breweries in that country. HSU employs 480 people.

Ardagh has agreed to pay €8 million for the stake. It will finance the deal from its own cash resources.

The acquisition is subject to the formal approval of the Polish competition authorities.

Pending this, Ardagh expects to complete the deal next month and will buy the remaining 17.6 per cent of the company over the next few months on the same terms.

It will be Ardagh's first Polish acquisition.