Through the deal, Guala Closures is expected to increase its current negligible presence in the German market and strengthen its position in the world beverage and glass bottled water markets
Guala Closures to acquire German firm Closurelogic. (Credit: Gerd Altmann/Pixabay)
Italy-based Guala Closures Group has agreed to acquire Closurelogic, a German aluminium closures manufacturer.
The deal is valued at around €12.2m of which €8.2m for the assets and €4m for the inventory. The transaction will be funded through the available funds and will use the company’s RFC facility.
Through the deal, Guala Closures is expected to increase its current negligible presence in the German market and strengthen its position in the world beverage and glass bottled water markets.
Additionally, the acquisition will allow the company to boost production capacity to serve new clients.
Established in 1959, Closurelogic produces premium aluminium and composite closures for beverages and water glass bottles. The company recorded sales of about €87m and an EBITDA of approximately €1.6m in 2018.
The transaction is expected to be finalised in early February 2020
Guala Closures Group chairman and CEO Marco Giovannini said: “This transaction is in line with the Group’s strategy to selectively consolidate the market and in particular the glass bottle mineral water one, a strongly growing market thanks to increasing focus on sustainability and premiumization.
“The deal structure guarantees Guala Closures the possibility of acquiring only the assets of Closurelogic GmbH, without taking on board the liabilities generated by the previous management.”
Guala Closures Group stated that the agreement foresees the continued production in the current German facility as the company decided to maintain the current employees.
Slated to be finalised in early February 2020, the deal will be executed by Guala Closures Germany, a newly established company which is 100% owned by GCL International, the Group Luxembourg company.
In 2018, Guala Closures Group has announced new aluminium smart closure with near field communication (NFC) technology at the Unified Wine & Grape Symposium in the US.
The NFC tag is saved in the cap and helps wine brand owner in marketing data acquisition, logistic, track and trace applications.