Orora to acquire luxury glass bottle manufacturer Saverglass as its “centerpiece”

07 Sep 2023 --- Global packaging manufacturer Orora has entered into arrangements to acquire Saverglass and all of the shares of Olympe for an enterprise value of €1.29 million (US$1.38 million).

Saverglass is a global leader in designing, manufacturing, customizing and decorating high-end bottles for the premium and ultra-premium wine and spirits markets. The acquisition will boost Orora’s future growth opportunities, strategic advantage, scale and diversification.

Saverglass will become the “centerpiece” of Orora’s global glass business unit and will operate as a third platform for growth under the leadership of Orora and Saverglass’ management teams, 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 scale player in attractive premium segments,” says Orora CEO Brian Lowe.

Funding for the acquisition
The acquisition will be funded via a fully underwritten equity raising of approximately AUD$1.345 million (US$858.8 thousand) comprising a AUD$450 million (US$287.3 million) institutional placement.

Orora will take over Saverglass to expand its glass bottle portfolio.Additionally, an AUD$895 million (US$571.5 million) 1-for-2.55 accelerated non-renounceable pro rata entitlement offer (“Equity Raising”), and AUD$875 million (US$558.7 million) of acquisition debt financing are funded.

From a commercial, product and geographic perspective, the combination of Saverglass and Orora is expected to unlock “value creation opportunities.” Near-term synergies of AUD$15 million (US$9.6 million) are expected from network optimization, cost rationalization and operational efficiencies.

“We are 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 realized from the combined global network and capabilities,” says Jean-Marc Arrambourg, CEO at Saverglass.

Orora says the acquisition will create “attractive” value for its existing shareholders.

Following French guidelines
Additionally, Orora and the vendors of Olympe, a business management consultant in Feuquières, France, have entered into a put option agreement. The agreement allows the vendors to sell the shares in Olympe to Orora.

The vendors’ exercise of the put option under the put option agreement and entry into a binding Share Purchase Agreement to implement the acquisition is subject to the completion of specific mandatory French works council consultation processes. They are required to comply with French labor laws.

Following the exercise of the put option and upon execution of a binding share purchase agreement, the acquisition will be subject to various conditions precedent customary for a transaction of this nature – such as obtaining all necessary regulatory approvals.

Completion of the acquisition is expected to occur in the last quarter of 2023, subject to the satisfaction of all conditions.

Edited by Sabine Waldeck

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