Global glass and metal packaging supplier Ardagh Group intends to acquire 100% of the common stock of South African glass maker Consol Holdings for R10.1 billion.
The transaction will include Consol’s operations in South Africa, Nigeria, Kenya and Ethiopia.
Consol operates four glass production facilities and serves a range of international, regional and national customers, primarily in the beer, wine, spirits, food and non-alcoholic beverage industries.
The glass maker reported revenue of around R 9 billion in the fiscal year ended June 30, with sales in South Africa contributing around 90% of overall revenue.
Ardagh expects glass consumption in Consol markets to continue increasing due to population growth, rising income levels and the shift to high-end, one-way sustainable glass packaging .
“We are very pleased to expand our presence in Europe and North America in glass packaging in Africa with the acquisition of Consol, a high quality company led by an excellent management team.
“Consol is a market leader in the region, with excellent relationships with a diverse national and multinational customer base.
“We look forward to welcoming Consol to the Ardagh family and investing in the long-term growth of the African market, driven by consumer trends and growing awareness of sustainability,” said Ardagh President. Paul Coulson comments.
“The Consol team has built a great company, with an established reputation for delivering quality products to a growing customer base. Ardagh’s long-term presence and commitment to glass packaging make it the ideal owner to continue this progress, ”adds the President of Consol. Bruce macrobert.
Completion of the acquisition is subject to certain conditions, including regulatory approvals, which are expected to be obtained by the second quarter of 2022.
Once the transaction is approved, it would be “an excellent strategic fit” for Consol which enables continued growth on the African continent by leveraging Ardagh’s proven glass capabilities, technical expertise and customer base. and international suppliers.
Barclays acted as exclusive financial advisor to Consol and Citigroup acted as exclusive financial advisor to Ardagh.