Orora to acquire Saverglass to bolster position in premium spirits and wine packaging

Australia-based Orora, a leader in sustainable and innovative packaging solutions, announces its plans to acquire Saverglass, a global leader in the design and manufacture of high-end bottles for premium and ultra-premium spirits and wine markets. With an enterprise value of €1.29 billion (A$2.15 billion), the acquisition promises significant value creation opportunities and is set to be a game-changer in the packaging industry. The deal is subject to regulatory approvals and is expected to close in the last quarter of CY2023.

The acquisition of Saverglass aligns perfectly with Orora’s portfolio from a commercial, product, and geographic perspective. It is expected to unlock value creation opportunities for the combined group, including near-term synergies of A$15 million arising from network optimization, cost rationalization, and operational efficiencies. Financially, the deal represents a substantial uplift, with Orora’s Underlying FY23 EBITDA expected to increase by 69% to approximately A$749 million.

Orora CEO Brian Lowe expressed enthusiasm about the acquisition, stating, “This strategic move strengthens our existing glass business and establishes Orora as a global player in attractive premium segments.” Likewise, Saverglass CEO Jean-Marc Arrambourg sees Orora as a “natural owner” of Saverglass, citing the high complementarity of the two businesses.

Saverglass, renowned for its premium and ultra-premium glass bottles, serves luxury spirits and wine producers globally. With its advanced design and R&D capabilities, Saverglass creates more than 140 new customer models each year. Located across three continents, the company’s well-invested, strategically-located manufacturing operations serve customers in more than 100 countries. Notably, Saverglass has an average 15-year relationship with its top 20 customers, underscoring a loyal and committed customer base.

The acquisition is especially timely as Saverglass is poised for continued growth, leveraging strong premiumisation trends in spirits and wine. The company has recently invested in incremental capacity in North America, targeting a key under-penetrated market with significant momentum in Premium+ spirits, including tequila and US whiskey.

Subject to mandatory French works council consultation processes and regulatory approvals, the acquisition is on track to be finalized in the last quarter of CY2023. The deal promises to create significant value for Orora shareholders and is expected to be mid-single-digit EPS accretive in the first full financial year of ownership.

The acquisition firmly establishes Orora and Saverglass as global leaders in the packaging industry, particularly in the premium and ultra-premium spirits and wine segments. This deal not only enriches Orora’s existing portfolio but also promises substantial growth and value creation in the coming years.