SYDNEY, AUSTRALIA: Orora Group has entered into arrangements relating to the acquisition of Saverglass, a global leader in the design, manufacturing, customisation and decoration of high-end bottles for the premium and ultra-premium spirit and wine markets.
The enterprise value of AUD 2.156 billion represents an implied multiple of 7.7x Adjusted EBITDA of Saverglass for the last 12 months.
From a commercial, product and geographic perspective the combination of Saverglass and Orora Ltd is expected to unlock significant value creation opportunities for the Combined Group.
In addition, near-term synergies of AUD 15 million are expected from network optimisation, cost rationalisation and operational efficiencies.
The acquisition will provide attractive value creation for existing shareholders of Orora and is expected to be mid-single digit EPS accretive (including full run-rate synergies) in the first full financial year of ownership.
Orora and the vendors of Olympe SAS have entered into a Put Option Agreement which provides the vendors the option to sell the shares in Olympe SAS to Orora.
Exercise of the put option by the vendors under the Put Option Agreement and entry into a binding Share Purchase Agreement in order to implement the acquisition is subject to the completion of certain mandatory French works council consultation processes in order to comply with French labour laws.
Following 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, including obtaining all necessary regulatory approvals.
Subject to the satisfaction of all conditions precedent, completion of the Acquisition is expected to occur in the last quarter of CY2023.
Orora CEO Brian Lowe said: “We are extremely pleased to welcome Saverglass into the Ororo Group. This strategic acquisition further strengthens our existing glass business, establishing Ororo as a global player of scale in attractive premium segments. I look forward to working with the Saverglass team, led by CEO Jean-More Arrambourg as we embark on this journey together.”
Saverglass CEO Jean-Marc Arrambourg said: “We are extremely 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 realised from the combined global network and capabilities.”
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