Based in Johannesburg, Consol caters to a wide range of international, regional and domestic customers, primarily in the beer, wine, spirits, food and non-alcoholic beverage sectors
Ardagh agrees to acquire glass packaging firm Consol for $635m. (Credit: Ardagh Group S.A.)
Ardagh Group has signed an agreement to acquire Consol Holdings, a South African glass packaging producer, for an equity value of ZAR10.1bn ($635m).
Established in 1946 and based in Johannesburg, Consol operates four glass manufacturing facilities.
The company caters to a wide range of international, regional and domestic customers, primarily in the beer, wine, spirits, food and non-alcoholic beverage sectors.
Consol reported consolidated revenues of ZAR9bn ($566m) in the year to 30 June 2021.
Ardagh chairman Paul Coulson 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.
“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.
“We look forward to welcoming Consol to the Ardagh family and to investing in the long-term growth of the African market, driven by consumer trends and rising sustainability awareness.”
Ardagh said that it will fund the acquisition through a combination of its own cash resources and the assumption of Consol’s existing net debt of ZAR5.7bn ($358m)
The deal is expected to close in the second quarter of 2022, subject to certain conditions, including regulatory approvals.
Consol chairman Bruce MacRobert said: “The Consol team has built a great business, with an established reputation for delivering quality products to a growing customer base. Ardagh’s long-term presence in, and commitment to, glass packaging, makes it the ideal owner to continue this progress.”
Citigroup served as an exclusive financial advisor to Ardagh on the transaction, while Barclays acted as an exclusive financial advisor to the South African packaging firm.
Earlier this month, Ardagh Group’s business unit Ardagh Metal Packaging (AMP) announced plans to invest $200m to build a new beverage can facility in Northern Ireland.