Packaging manufacturer and distributor Orora has announced it has entered into arrangements to acquire Saverglass by acquiring all Olympe SAS shared at an enterprise value of €1,290 million (AUD $2,156 million).
Saverglass specialises in designing, manufacturing, customising and decorating high-end bottles for the premium and ultra-premium spirit and wine markets. From a commercial, product and geographic perspective, the acquisition is a logical extension of Orora’s global reach as a sustainable value-added packaging solutions player.
Brian Lowe, CEO of Orora, said the acquisition would help the Melbourne-based company become a global competitor with the expected value-creation opportunities Saverglass represents.
“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,” he said.
Jean-Marc Arrambourg, CEO of Saverglass, said: “We are extremely excited to join Orora as we look to consolidate and accelerate Saverglass’ strong momentum. We see Orora as a natural owner of Saverglass, given the high complementarity of the two businesses and significant benefits to be realised from the combined global network and capabilities.”
The acquisition will allow Orora to scale its existing operations, extending its footprint and product capabilities to include offshore markets enhancing its financial performance and growth prospects.
Saverglass’ management teams and CEO Jean-Marc Arrambourg will remain with the company as it joins Orora as a separate platform, with Arrambourg assuming responsibilities over the new division.
The acquisition will be funded via a fully underwritten equity raising of approximately $1,345 million, comprising a $450 million institutional placement, a $895 million 1-for-2.55 accelerated non-renounceable pro rata entitlement offer, and $875 million of Acquisition debt financing.