Voila! Orora’s European target revealed, Citi, Macquarie on ticket
Quelle surprise. ASX-listed can and bottle maker Orora is seeking to acquire high-end glass bottle manufacturer Saverglass, which was founded in 1897 in the historic Bresle Valley in France, where glass has been produced since the 15th century.
Brian Lowe, chief executive of packaging giant Orora, is set to start convincing investors of the merits of a mooted foray into France’s high-end glass market.
Sources told this column Orora was in late-stage negotiations to acquire Saverglass, which caters to the premium, super-premium and prestige spirit, fine wine, champagne and sparkling wine markets.
It is understood Citi and Macquarie Capital are advising Orora and will be joint lead managers on a $1 billion-plus raising to bankroll the deal. Sources emphasised the transaction was not yet signed. Orora shares were placed in a trading halt on Monday.
It comes after Street Talk reported on Sunday that Orora was closing in on the acquisition of an offshore glass business.
Orora discussed its interest in expanding through acquisitions in North America and Europe earlier this month, when it handed down 2023 financial year numbers.
The Saverglass acquisition could give Orora’s annual revenue a circa 30 per cent boost. That’s based on the acquirer’s $4.3 billion revenue for the 2023 financial year and the target’s $US794 million ($1.2 billion) in sales for 2022.
Bottles made by Saverglass.
Saverglass has six glass factories, four decoration facilities and even a training facility called the Saverglass school of glass and decoration. It has stayed away from mass market customers, instead choosing to focus on high-end alcohol brands like Grey Goose Vodka and Glenfiddich. Nearly 72 per cent of Saverglass’s bottles were made for
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