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.

International Year of Glass

Ardagh Glass Packaging celebrates the International Year of Glass

Ardagh Glass Packaging (AGP), part of Ardagh Group, will celebrate the United Nations International Year of Glass throughout 2022, commemorating the essential role of glass packaging. The In...

10 Jan 2022

EocVadis award Ardagh Gold rating

Ardagh Group awarded gold rating again from EcoVadis

EcoVadis, one of the most trusted and independent sustainability rating platforms, has awarded Ardagh a gold rating once again. EcoVadis gold, one of the highest ratings and the sixth for Ar...

6 Jan 2022

Innovation Award for Hitchcock Bottle

HITCHCOCK Juice Collection bottle from Ardagh wins the "Product Innovation in Glass" award

Ardagh Glass Packaging in Nienburg, Germany produces 150 different glass bottles and jars for the food and the beverage industry. One bottle in particular - the extraordinary blue Hitchcock ...

20 Dec 2021

Investing in the circular economy

Investing in the circular economy

Together with our joint venture partners Zignago and Verallia, we have continually invested to increase the processing capacity at our glass recycling facility, Vetreco S.r.l. in Supino, Sou...

15 Dec 2021

Our website uses cookies to analyse traffic to this site. By continuing to use our site without changing your browser settings to block or remove cookies, you are agreeing to the terms of our Privacy Statement.