Ardagh Group
Menu

Acquisition of Consol for $1 billion

Ardagh Group S.A. (“Ardagh”) announces that it has agreed to acquire Consol Holdings Proprietary Limited (“Consol”), the leading producer of glass packaging on the African continent, for an equity value of ZAR10.1 billion ($635 million). Headquartered in Johannesburg, and founded in 1946, Consol is the market leader in South Africa, operating four well-invested glass production facilities. It serves a broad range of leading international, regional and domestic customers, principally in the beer, wine, spirits, food and non-alcoholic beverage sectors.

In the year to June 30, 2021, Consol reported consolidated revenues of ZAR9.0 billion ($566 million). South Africa represented approximately 90% of revenues, with the balance represented by smaller production facilities in Kenya, Nigeria and Ethiopia. Glass consumption in Consol’s markets is projected to continue to increase, driven by long-term trends, including population growth, rising income levels and shifts to premium one-way sustainable glass packaging.

The enterprise value of the transaction represents a multiple of approximately 6.6 times LTM Adjusted EBITDA to September 30, 2021. Ardagh expects to finance the acquisition through a combination of its own cash resources and the assumption of ZAR5.7 billion ($358 million) existing net debt at Consol. Completion of the acquisition is subject to certain conditions, including regulatory approvals that are expected to be obtained in the second quarter of 2022.

Ardagh Chairman, Paul Coulson, commented: "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."

Bruce MacRobert, Chairman of Consol, remarked that: “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 acted as exclusive financial adviser to Ardagh, and Barclays acted as exclusive financial adviser to Consol.

AMP to issue preferred shares to Ardagh

Ardagh Metal Packaging to issue preferred shares to Ardagh Group

Ardagh Group S.A. to subscribe for €250m of Perpetual Preferred Shares to be issued by Ardagh Metal Packaging S.A.Luxembourg (June. 01, 2022) - Ardagh Group (“Ardagh”) announces its in...

1 Jun 2022

Sustainable Investments in Brazil

Investment in Sustainable Glass and Metal Packaging in Brazil

Ardagh Group (“Ardagh”) has today announced that the location of its previously-announced first glass production facility in Brazil will be at Juiz de Fora, Minas Gerais. The state-of-th...

25 May 2022

Ardagh converts to electric vehicles

Ardagh Group distribution center converts to energy-efficient electric vehicles

Ardagh Group and a leading logistics provider, Buske Logistics, recently partnered with Shoppa’s Material Handling LTD to convert its current fleet of propane vehicles to electric vehicles...

19 May 2022

Acquisition of Consol Glass Completed

$1 billion Acquisition of Consol Glass Completed

Ardagh Group (“Ardagh”) is pleased to announce that its acquisition of Consol Holdings Proprietary Limited (“Consol”), the leading producer of glass packaging on the African continen...

29 Apr 2022