Recyclable metal and glass packaging multinational supplier Ardagh Group has completed the $1-billion acquisition of glass packaging manufacturer Consol, including net debt assumed in Consol.
This represents a significant inward investment into the South African and other markets in which Consol operates, with a further R3-billion, or $200-million, investment programme in two new furnaces.
Ardagh’s acquisition of Consol will enable further opportunities for future investment in glass manufacturing in Africa. To this end, Ardagh is committed to a third furnace investment at its Nigel facility, in Gauteng, which will add to the existing N2 expansion project due for startup this month.
These combined investments will total R3-billion and create more than 250 direct jobs, with significant ancillary supply chain expenditure resulting from these projects, the company says.
“By combining Ardagh’s global reach with Consol’s know-how on the African continent, we are very well-positioned to partner with our customers to meet the growing consumer demand in Africa for premium, sustainable glass packaging,” says Ardagh chairperson and CEO Paul Coulson.
On completion of the acquisition, Mike Arnold stepped down as CEO of Consol following a very successful 20-year tenure in that role. Arnold will become a director of Ardagh Glass Packaging Holdings Africa and will be part of the Ardagh executive team responsible for growing Ardagh’s presence in Africa.
Paul Curnow, previously CEO-designate, has succeeded Arnold as CEO. He will also become a director of Ardagh Glass Packaging Holdings Africa.
Further, Bruce MacRobert, former Consol chairperson, has become chairperson of Ardagh Glass Packaging Holdings Africa and said Ardagh’s investment in Consol and in the expansion of glass production in Africa is testament to Ardagh’s faith in the Consol team and in Africa’s potential.
Consol is headquartered in Johannesburg and operates four well-invested glass production facilities. It also operates smaller production facilities in Kenya, Nigeria and Ethiopia.
Consol serves a range of leading international, regional and domestic customers, principally in the beer, wine, spirits, food and non-alcoholic beverage sectors.
Following the acquisition of Consol, Ardagh will operate 65 production facilities in 16 countries, on four continents, employ about 20 000 people and have yearly sales approaching $10-billion, the company says.
The Competition Tribunal and Competition Commission both approved the acquisition with conditions, such as local procurement of cullet and an employee ownership scheme, among others.