Australian packaging company Orora has announced its plans to acquire Saverglass, a high-end glass bottle maker based in France. The deal, which is valued at around 2.16 billion Australian dollars (US$1.40 billion), will strengthen Orora’s position in the global glass business and open up new growth opportunities.
Expanding Footprint and Creating Growth Opportunities
Saverglass specializes in designing and manufacturing bottles for premium spirit and wine markets. With its acquisition, Orora aims to expand its reach beyond Australia and establish itself as a global player in attractive premium segments. The acquisition will serve as a strategic move to bolster Orora’s existing glass business.
Saverglass: A Renowned Industry Player
Saverglass is a major player in the global high-end spirits bottles market, holding a 33% market share. Its biggest sales markets are in France and the Americas. The company’s impressive portfolio includes renowned brands such as Grey Goose vodka. With an average customer relationship span of 15 years with its top 20 clients, Saverglass has cemented its reputation as a trusted partner in the industry.
Financial Arrangements
To facilitate the acquisition, Orora plans to raise approximately A$1.35 billion. This will be achieved through a fully underwritten equity raising scheme, which consists of a A$450 million institutional placement and a A$895 million 1-for-2.55 accelerated non-renounceable pro rata entitlement offer. Additionally, the company has secured A$875 million of acquisition debt financing.
With this strategic acquisition, Orora aims to strengthen its position as a global leader in the glass business and tap into new avenues for growth.
Orora Acquires Saverglass: A New Phase of Growth Begins
Orora, the leading packaging solutions provider, has announced its acquisition of Saverglass, a well-established bottle manufacturer. The partnership is set to bring significant value creation opportunities for both companies, particularly in terms of commercial, product, and geographic expansion.
Unleashing the Potential of the Combined Group
By combining forces, Saverglass and Orora aim to unlock new growth avenues that will benefit the overall business. Orora projects a mid-single-digit boost in earnings-per-share in the first full fiscal year of owning Saverglass, demonstrating their confidence in the acquisition’s success.
A Promising Road Ahead
Jonathan Zafrani, co-head of Carlyle Europe Partners, expressed his best wishes for Saverglass in this exciting new phase. Under the ownership of Carlyle Group since 2016, Saverglass has maintained an ambitious growth strategy, focusing on expanding into new geographies, particularly in the Americas.
Jean-Marc Arrambourg, the Chief Executive of Saverglass, will lead a newly formed division that encompasses both Saverglass and Orora’s Gawler operation. In this role, Arrambourg aims to consolidate and accelerate the positive momentum within the business.
Shared Synergies and Global Capabilities
Saverglass sees Orora as a natural fit due to the complementary nature of the two enterprises. The combined global network and enhanced capabilities are expected to yield substantial benefits for both businesses. With a strong focus on consolidating their position as industry leaders, Saverglass envisions Orora as the perfect owner to drive their continued success.
Looking Ahead
Orora’s recent statement forecasts increased profits in the coming year. Their beverage business in Australasia experienced double-digit revenue growth in the last fiscal year, supported by higher can volumes. However, sales volumes in their glass business were softer due to lower commercial wine-bottle sales.
This acquisition marks the beginning of an exciting new chapter for Orora and Saverglass. Both companies are well-positioned to thrive and capitalize on the opportunities that lie ahead.