Australian packaging giant Orora completes the acquisition of Saverglass for €1,309.7 million ($2,158.8 million), marking a strategic move that comes with additional transaction costs of $40.4 million.
Orora, the prominent Australian packaging group, has successfully concluded the acquisition of Saverglass, solidifying the deal at a substantial €1,309.7 million ($2,158.8 million). The completion, as disclosed in the latest financial note, involves an additional $40.4 million in transaction costs related to the integration of the French glass manufacturer. The financial results for the second half of 2023 report that Saverglass’ inaugural month under Orora ownership, starting December 1, met expectations, generating €69.5 million in revenue, €15.1 million in EBITDA, and €8.1 million in EBIT.
In their outlook for 2024, Orora addresses the challenges in the glass packaging sector, cautioning against ongoing softening. Despite this, the strength in cans is anticipated to offset the decline in glass, attributed to lower commercial wine volumes and reduced beer bottle sales. The integration of Orora’s Gawler, South Australia glass production facility into the Saverglass group has commenced, projecting synergies of approximately $15 million from 2025 onwards through network optimization, cost rationalization, and operational efficiencies across the combined glass business.
Furthermore, Orora’s commitment to sustainability is evident through the initiation of site preparation for an oxygen plant to upgrade the G3 furnace at Gawler to oxyfuel technology in the financial year 2025. This transformative move is expected to lead to a 20% reduction in G3 furnace CO2 emissions, positioning it among the top 10% of energy-efficient furnaces globally, resulting in a significant decrease in greenhouse gas emissions.
Under the Circular Economy Pillar, Orora has made noteworthy strides, achieving 38% recycled content in its glass packaging and remains on track to reach the 2025 target of 60%. Saverglass, in particular, boasts an impressive 73.3% cullet in colored glass. The Cullet Beneficiation Plant at Gawler, South Australia, plays a pivotal role in diverting cullet from landfills, supported by Orora’s cullet sourcing program. Active in all mainland Australian states, this program has expanded to include additional cullet sourced from the Victorian Container Deposit Scheme since November 2023.
Source: GlassBalkan