Vidrala acquires Encirc (formerly Quinn Glass) for $476m

Encirc: 'No job losses and contracts with Diageo and Britvic continue as normal'

By Jenny Eagle

- Last updated on GMT

Vidrala, through its subsidiary Inverbeira Sociedad de Promoción de Empresas, has acquired Encirc (formerly Quinn Glass) whose clients include Diageo and Britvic, for €408.6m ($476m).

Encirc has two manufacturing plants, in Derrylin, Northern Ireland and Elton, Cheshire. The Derrylin and Elton plants manufacture container glass for the UK and Ireland food and drink sectors with the Elton plant also providing a beverage filling and logistics service.

'Business as usual'

A spokesman for Encirc told FoodProductionDaily, the company employs 1,200 people in total.

“Our customers will not experience any changes following the acquisition and they will continue to work as normal with their existing Encirc team,” he said.

“The sale will not affect jobs at either of our sites and the day to day running of the business will continue as usual.”

He added Vidrala has a sizeable presence in Europe and has committed to supporting Encirc’s continued development and investment. Sales forecast for the year 2014 were approximately £243m and EBITDA £48m.

Vidrala recognises the significant achievements and position Encirc has is the industry. It plans to invest in both plants and work closely with the management team to encourage local management and ensure the business’ continued success​,” he said.

European glass packaging market

Gorka Schmitt, CEO of Vidrala, said the acquisition will enlarge Vidrala’s position in the European glass packaging market as Encirc has demonstrated a solid market share and profitability growth in recent years through modern facilities, competitiveness and strong customer relationships.

This acquisition represents an important milestone for Vidrala​,” he added.

Formerly Quinn Glass business, owner Sean Quinn lost control of the firm in 2011 as part of an ongoing battle with Anglo Irish Bank. Anglo Irish was the first Irish bank to seek a government bail-out and was nationalised in 2009 and its affairs taken over by the Irish Bank Resolution Corporation (IBRC).

According to reports, a consortium of banks and lenders rebranded the firm as Aventas and started selling parts of the group. The packaging and construction materials division was sold to Quinn Business Retention Organisation while the radiators' business was sold to a group of Irish industrialists.

Rebranded as Encirc last year, the container glass division is the latest part of the company to be sold.

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