Orora has announced that it has entered into arrangements relating to the acquisition of Saverglass, a global leader in the design, manufacturing, customisation and decoration of high-end bottles for the premium and ultra-premium spirit and wine markets, a few days after having confirmed to be in discussions about a potential acquisition. The enterprise value of EUR 1,290 million (AUD 2,156 million) represents an implied multiple of 7.7x Adjusted EBITDA of Saverglass for the last 12 months (LTM) to 30 June 2023 (Jun-23) of EUR 168 million (excluding any proforma synergies).
From a commercial, product and geographic perspective the combination of Saverglass and Orora is expected to unlock significant value creation opportunities for the Combined Group. In addition, near-term synergies of AUD 15 million are expected from network optimisation, cost rationalisation and operational efficiencies. The Acquisition will provide attractive value creation for existing shareholders of Orora and is expected to be mid-single digit EPS accretive (including full run-rate synergies)4 in the first full financial year of ownership. On a pro forma basis, the Acquisition represents a c. 69 percent uplift in Orora’s Underlying FY23 EBITDA to c. AUD 749 million (excluding any pro forma synergies), providing a 320bps increase in Underlying EBITDA margin.
Orora and the vendors of Olympe SAS have entered into a Put Option Agreement which provides the vendors the option to sell the shares in Olympe SAS to Orora. Exercise of the put option by the vendors under the Put Option Agreement and entry into a binding Share Purchase Agreement in order to implement the Acquisition is subject to the completion of certain mandatory French works council consultation processes in order to comply with French labour laws. Following exercise of the put option and upon execution of a binding Share Purchase Agreement, the Acquisition will be subject to various conditions precedent customary for a transaction of this nature, including obtaining all necessary regulatory approvals. Subject to the satisfaction of all conditions precedent, completion of the Acquisition is expected to occur in the last quarter of CY2023.
The full announcement is available here.