Australian Packaging Company to Acquire Saverglass

Australian packaging company Orora has announced its plans to acquire French high-end glass bottle maker Saverglass from private-equity firm Carlyle Group. The deal, valued at approximately 2.16 billion Australian dollars (US$1.40 billion), will see Saverglass become the centerpiece of Orora's glass business, expanding its presence beyond Australia and creating new avenues for growth. In order to fund the acquisition, Orora intends to raise around A$1.35 billion.

Orora's CEO, Brian Lowe, described the strategic acquisition as a way to strengthen the company's existing glass business and establish itself as a global player in premium segments. Saverglass currently holds a 33% market share in high-end spirits bottles worldwide, with its main markets being France and the Americas. Notably, it boasts longstanding relationships – averaging 15 years – with its top 20 customers, which include renowned brands like Grey Goose vodka.

To fund the acquisition, Orora will utilize a fully underwritten equity raising plan consisting 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 in acquisition debt financing.

With the acquisition of Saverglass, Orora is poised to enhance its presence in the premium packaging industry and solidify its position as a leading global player.

Orora Acquisition Expected to Drive Value Creation Opportunities

Orora, a leading packaging solutions company, has announced its acquisition of Saverglass, a specialist in luxury glass bottle manufacturing. The acquisition is projected to have mid-single-digit earnings per share (EPS) accretion in the first fiscal year of ownership.

The combination of Saverglass and Orora is anticipated to unlock significant value creation opportunities for the merged group. Both companies bring strong commercial, product, and geographic synergies to the table.

Orora is also expecting near-term cost benefits of A$15 million as a result of this strategic union. This move will further consolidate Orora's position in the market and accelerate momentum in the business.

Jean-Marc Arrambourg, Chief Executive of Saverglass, will head a new division, encompassing both Saverglass and Orora's Gawler operation. With his expertise and leadership, Arrambourg aims to capitalize on the complementary nature of the two businesses and maximize the benefits derived from their combined global network and capabilities.

Carlyle Group, which acquired Saverglass in 2016, has not yet provided a comment on the acquisition.

Looking ahead, Orora expects profits to rise following the success of its beverage business in Australasia, which experienced double-digit revenue growth in the last fiscal year. This growth was primarily driven by increased can volumes. However, glass volumes were slightly subdued due to lower commercial wine volumes.