Global glass and metal packaging supplier Ardagh Group intends to acquire 100% of the ordinary shares of South African glass manufacturer 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 it serves a range of international, regional and domestic customers, principally in the beer, wine, spirits, food and non-alcoholic beverage sectors.
The glass manufacturer reported revenues of about R9-billion in the financial year ended June 30, with sales in South Africa having contributed about 90% of the overall revenues.
Ardagh expects glass consumption in Consol’s markets to continue increasing on the back of population growth, rising income levels and shifts to premium one-way sustainable glass packaging.
“We are very pleased to expand our European and North America presence in glass packaging into Africa with the acquisition of Consol, a high-quality business led by an excellent management team.
“Consol is a market leader in the region, with great relationships across a diversified domestic and multinational customer base.
“We look forward to welcoming Consol to the Ardagh family and to investing in the long-term growth of the African market, driven by consumer trends and rising sustainability awareness,” Ardagh chairperson Paul Coulson comments.
“The Consol team has built a great business, with an established reputation for delivering quality products to a growing customer base. Ardagh’s long-term presence in, and commitment to, glass packaging, makes it the ideal owner to continue this progress,” adds Consol chairperson 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 is said to be “an excellent strategic fit” for Consol that enables continued growth on the African continent by leveraging off Ardagh’s proven glassmaking capabilities, technical expertise and international customer and supplier base.
Barclays acted as exclusive financial adviser to Consol and Citigroup acted as exclusive financial adviser to Ardagh.