Milford Plant Part of Possible Saint-Gobain Division Sale

An international manufacturer based in Luxembourg is looking to buy the North American glass-container manufacturing division of Saint-Gobain, a move that would impact its Milford facility that employs about 225.

Ardagh Group said it has entered into exclusive talks with Saint-Gobain, the French multinational which also has operations in Worcester and Northborough, and is pushing ahead with plans to add a silicon wafer-manufacturing facility in Devens.

The deal, which would be worth about $1.7 billion, would include the other 12 Saint-Gobain glass manufacturing plants in the United States, all of which operate under the name Verallia North America. The division, headquartered in Muncie, Ind., is the second largest glass container manufacturer in the U.S., behind Owens-Illinois, and serves the North American wine, food and beverage industries. It produces approximately 9 billion containers annually from its 13 facilities and employs about 4,400, according to Ardagh. The division has annual revenue of about $1.6 billion. Saint-Gobain said the division turned an operating profit of $171 million in 2012.

The deal must still secure approval from Saint-Gobain's Works Council, according to both companies. It must also pass regulatory muster in the U.S., according to Saint-Gobain. Ardagh said it expects the deal to close later this year.

Until then, Gina Behrman, Verallia's director of corporate communications, said Saint-Gobain "will continue to operate under the Verallia North America name and we remain focused on running our business and ensuring the continued success of our company."

CORRECTION: The original version of this report gave an incorrect price on the deal. It is about $1.7 billion.

FTC Challenges Saint-Gobain Deal