Ardagh Group has announced that it has completed the acquisition of African glass packaging maker, Consol Holdings Proprietary Limited for $1 billion (€950 million).
The deal, which was announced in November of last year, includes net debt assumed in Consol, which represents a significant investment in the South African and other markets in which the company operates, and an additional ZAR 3 billion (€180 million) for two new furnaces in Africa.
The acquisition will see Ardagh operate 65 production facilities in 16 countries across four continents, employing approximately 20,000 people, with annual sales of approximately $10 billion (€9.5 billion).
Founded in 1944, Johannesburg-based Consol is one of the top packaging makers in South Africa with four glass production facilities. It also operates smaller production facilities in Kenya, Nigeria and Ethiopia.
Consol's client base includes international, regional and domestic customers, principally in the beer, wine, spirits, food and non-alcoholic beverage sectors.
Paul Coulson, chairman and CEO of Ardagh, said, "We are delighted to have completed this strategic acquisition. By combining Ardagh’s global reach with Consol’s know-how on the African continent, we are very well-positioned to partner with our customers to meet the growing consumer demand in Africa for premium, sustainable glass packaging.”
The acquisition of Consol will open up avenues for Ardagh to invest in glass manufacturing in Africa in the future.
In addition to the acquisition, Ardagh has pledged to invest in a third furnace at its Nigel facility in Gauteng, which will add to the existing N2 expansion project.
Consol CEO, Mike Arnold, stepped down upon the completion of the acquisition, following a 20-year tenure in the role.
Arnold will become a director of Ardagh Glass Packaging Holdings Africa (Pty) Limited, and will be part of the Ardagh executive team, responsible for growing Ardagh’s presence in Africa.
Previous CEO Designate, Paul Curnow, has succeeded Arnold as CEO and also stepped in as a director of Ardagh Glass Packaging Holdings Africa (Pty) Limited.
Elsewhere, Bruce MacRobert, the former chairman of Consol, has become the chairman of Ardagh Glass Packaging Holdings Africa (Pty) Limited.
“Ardagh’s investment in Consol and the expansion of glass production in Africa is testament to Ardagh’s faith in the Consol team and in Africa’s potential,” MacRobert stated.