Sun Capital to divest glass packaging manufacturer Allied Glass to Verallia

Sun Capital Partners through its affiliate has agreed to sell glass packaging manufacturer Allied Glass to Verallia, a French glass container manufacturing company, for a total enterprise value of £315 million, marking the first Fund VII exit.

UK-based Allied Glass is a glass packaging containers manufacturer for the spirits, drinks, and food markets, and specializes in shorter production runs for custom-made bottles.

Headquartered in Leeds, the glass packaging manufacturer has four furnaces in West Yorkshire and employs more than 600 people.

In December 2019, Sun Capital Partners through its affiliate acquired Allied Glass.

Sun Capital Partners to divest glass packaging manufacturer Allied Glass for £315 million to Verallia. Photo courtesy of Verallia.

Paul Daccus — Sun European Partners Managing Director said: “Allied is an outstanding business with an exceptional management team.

“Since 2019, we have worked with management to execute on several operational improvement opportunities, including ESG-friendly product innovation, SKU reporting and a significant CapEx program enhancing plant utilization.”

The transaction is expected to help Verallia increase its Northern European manufacturing footprint with UK presence and benefit from Allied Glass’ expertise in premium glass bottles, precisely in the Scotch Whisky and Gin segments.

With 2022 estimated sales of more than £150 million, Allied Glass reported revenue of £138 million in the fiscal year ended December 2021.

Patrice Lucas — Verallia CEO said: “This acquisition of Allied Glass is fully in line with our strategy which is to accelerate our investments in key markets while leveraging our industrial, technological and management expertise to generate synergies.

“I am convinced that Verallia and Allied Glass have an outstanding fit as we share common vision and values.

“This is a great milestone too, as the Group will be present on the UK market, I am confident that this combination will create sustainable value for customers, employees and shareholders.”

Sun Capital Partners was advised by its European affiliate, Sun European Partners with regard to the deal.

The transaction is expected to be complete by mid-November.