Australian packaging manufacturer Orora has agreed to buy high-end glass bottle manufacturer Saverglass for EUR 1.3 billion (AUD 2.16 billion).
Saverglass is a global leader in the design, manufacturing, and customisation of high-end bottles for the premium and ultra-premium spirit and wine markets. Its acquisition is expected to enhance Orora’s strategic advantage, scale, diversification, and future growth opportunities, the Australian manufacturer said in a media release.
The acquisition is expected to be mid-single-digit earnings per share accretive in the first full year of owning Saverglass.
The Australian company said it will fund the purchase with a $450 million institutional placement to eligible and existing institutional investors.
All new shares under the Equity Raising will be issued at $2.7 per new share, a 21.3 per cent discount to $3.43, based on the last close of Orora shares on 25 August adjusted for the $0.09 final dividend.
Orora and the vendors of Olympe SAS, Saverglass’ holdings company, have signed a Put Option Agreement, which allows the vendors the option to sell the shares of Olympe SAS to Orora.
Upon the acquisition’s completion, Saverglass will become a centrepiece of Orora’s global glass business unit, operating as a third platform for growth.
“We are extremely pleased to welcome Saverglass into the Orora Group. This strategic acquisition further strengthens our existing glass business, establishing Orora as a global player of scale in attractive premium segments. I look forward to working with the Saverglass team, led by CEO Jean-Marc Arrambourg as we embark on this journey together,” said Orora CEO Brian Lowe.
Arrambourg will assume responsibilities over the new division.
Orora’s glass leadership team will work closely with Saverglass’ management team, who will remain with the business.
“We are extremely pleased to welcome Saverglass into the Orora Group. This strategic acquisition further strengthens our existing glass business, establishing Orora as a global player of scale in attractive premium segments. I look forward to working with the Saverglass team, led by CEO Jean-Marc Arrambourg as we embark on this journey together,” Arrambourg said.
