Ardagh Glass Group, the Irish packaging manufacturer, will buy Impress Cooperatieve U.A. for 1.7 billion euros ($2.3 billion) from private equity firm Doughty Hanson & Co.
The enlarged business will trade as Ardagh Packaging Group with annual revenue of more than 3 billion euros, Dublin-based Ardagh said in a statement. It will operate 81 facilities in 24 countries.
Ardagh plans to sell about 1.7 billion euros of notes in euros and dollars to fund the acquisition, according to the statement. Citigroup Inc. was Ardagh’s financial adviser for the deal.
London-based Doughty Hanson said the sale will return 688 million euros to investors in its Private Equity Funds II and III. That is 2.6 times the investment cost for each fund, the company said in a statement.
Following the sale, Fund II will be closed with total returns of 2.7 times the investment cost and an internal rate of return of 84 percent, according to the statement. Fund III will continue with one other investment, the company said.
Doughty Hanson formed Impress in 1997 when it merged French and German packaging business, the company said. In 200, Impress bought the U.S. can making assets of H.J. Heinz Co. Deventer, Netherlands-based Impress Cooperatieve is the holding company for the Impress Group.