AGP-Europe, one of the original founding companies of SGÅ, will buy the shares of the remaining four co-owners to consolidate its position in Svensk Glasåtervinning as the sole proprietor
AGP-Europe to buy Svensk Glasåtervinning. (Credit: Meizhi Lang on Unsplash)
Ardagh Glass Packaging-Europe (AGP-Europe), a division of Ardagh Group, has agreed to acquire Swedish glass recycler Svensk Glasåtervinning (SGÅ).
The financial terms of the deal were not disclosed.
Svensk Glasåtervinning has been engaged in the collection and recycling of glass packaging across Sweden for more than 30 years. The company is said to contribute to the country’s 90% glass recycling rate.
A recent regulatory shift, effective from the start of 2024, mandates Swedish municipalities to assume responsibility for post-consumer glass collection and introduction of property-based glass collection.
AGP-Europe’s acquisition of Svensk Glasåtervinning is said to be motivated by a commitment to safeguard Sweden’s circular glass recycling infrastructure amidst these regulatory changes.
According to Ardagh, preserving the recycling system is crucial for maintaining a steady stream of high-quality glass cullet.
The acquisition also ensures that glass collected within Sweden remains within the country for use in glass packaging production, rather than being exported abroad for other industrial purposes.
AGP-Europe CEO Martin Petersson said: “Buying SGÅ is the perfect complement to our glass production in Sweden.
“It will protect glass recycling and ensure we continue to close the glass loop, securing the supply of recycled glass cullet – one of our most important raw materials for lower-carbon glass packaging.”
AGP-Europe is one of the original founding companies of Svensk Glasåtervinning in 1986. The company will now buy the shares of the remaining four co-owners, thereby consolidating its position as the sole proprietor.
Despite this change in ownership, Svensk Glasåtervinning will maintain its name and operational framework while collecting and recycling glass packaging waste and selling glass cullet.
Among the co-owners divesting their shares to AGP-Europe is the Swedish Brewery Association.
Svensk Glasåtervinning CEO Magnus Andersson said: “Ardagh knows and understands the glass industry, including glass recycling, and as a result, the glass industry in Sweden is fully supportive of the new ownership.
“We look forward to our continuing work with Ardagh to develop long-term goals for the company, and to maintain our position as a world-class glass recycler.”
The completion of the deal is subject to regulatory approvals which are anticipated to be secured during Q2 2024.