By Inti Landauro
PARIS--French state-owned fund BPI plans to buy a 10% stake in
Saint-Gobain's (SGO.FR) bottle and jar-making unit Verallia, while
private-equity firm Apollo Global Management Ltd. would take the
rest in a deal that values the company at almost 3 billion euros
($3.36 billion), a person close to the matter said Friday.
BPI's investment committee approved the acquisition of a 10%
stake in Verallia on Thursday, the person said. The sovereign fund
would pay a price proportional to the one Apollo will pay, the
person added.
Saint-Gobain on Monday announced it had started exclusive talks
with Apollo to sell the unit, adding that BPI was negotiating the
acquisition of a minority stake in Verallia.
The French company has been trying to divest Verallia for
several years, and has considered a number of options, including
spinning off the glass-bottle and jar maker through an initial
public offering.
The sale is part of a strategy led by the company's chief
executive, Pierre-Andre de Chalendar, to focus on construction
materials, a market where the company can develop high-performance
products, while withdrawing from more competitive areas such as
bottle manufacturing.
Verallia generated an operating profit of EUR230 million on
revenue of EUR2.39 billion in 2014, excluding its North American
operations, which Saint-Gobain sold separately two years ago for
EUR1.7 billion.
Write to Inti Landauro at inti.landauro@wsj.com
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