Ardagh buys glass packaging group in deal valued at $1bn

Under the terms of the deal Ardagh is buying Consol, a leading producer of glass packaging on the African continent, for an equity value of ZAR10.1bn (€566m). It also assumes the company’s debt of ZAR5.7bn (€320m).

Ardagh will finance the acquisition through a combination of its own cash resources and the assumption of Consol’s debt.

Headquartered in Johannesburg, and founded in 1946, Consol is the market leader in South Africa, operating four glass production facilities.

It serves a range of international, regional and domestic customers, principally in the beer, wine, spirits, food and non-alcoholic beverage sectors, according to a statement from Ardagh.

Glass consumption in Consol’s markets is projected to continue to increase, driven by a number of long-term trends, including population growth, rising income levels and shifts to sustainable glass packaging, Ardagh said.

“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,” Paul Coulson, chairman of Ardagh Group, said.

“Consol is a market leader in the region, with great relationships across a diversified domestic and multinational customer base. Virtually all of Consol’s multinational customers are also customers of Ardagh.”

Conditions

Completion of the deal is subject to certain conditions, including regulatory approvals that are expected to be obtained in the second quarter of next year.

Citigroup acted as exclusive financial adviser to Ardagh, and Barclays acted as exclusive financial adviser to Consol.

Ardagh is a global supplier of recyclable metal and glass packaging for brand owners around the world. The company operates 57 metal and glass production facilities in 12 countries, employing more than 16,000 people with sales of approximately $7bn.

Following completion of the Consol acquisition, Ardagh will have significant manufacturing operations on four continents.

Ardagh Metal Packaging (AMP), 75pc-owned by Ardagh Group, is listed on the New York Stock Exchange.

Ardagh, which traces its origins back to glass manufacturing in Dublin in the 1930s, also holds a 42pc interest in Trivium Packaging.

Earlier this month Ardagh announced plans to build a $200m beverage can plant in Northern Ireland.

The plant will be located near Belfast and will service the growing needs of AMP’s beverage customers in Ireland, the UK and Europe. The company said the investment will lead to the creation of “a large number” of full-time jobs for engineers, technicians as well as other roles.