Ardagh Group to acquire glass packaging company Consol

By Rachel Arthur

- Last updated on GMT


Related tags Ardagh group Ardagh Ardagh glass Africa Glass

Ardagh Group S.A. will acquire Consol Holdings Proprietary Limited, the leading producer of glass packaging on the African continent, for an equity value of ZAR10.1bn ($635m).

The move expands Ardagh’s glass production beyond its current European and North American footprint. The company notes that glass consumption in Consol’s African markets are projected to continue to grow: driven by population growth, rising income levels and shifts to premium glass packaging.

Consol supplies a broad range of international, regional and domestic customers, principally in the beer, wine, spirits, food and non-alcoholic beverage sectors.  Founded in 1946 and headquartered in Johannesburg, it is the market leader in South Africa and operates four glass production facilities.

In the year to June 30, 2021, Consol reported consolidated revenues of ZAR9.0bn ($566m). South Africa represented approximately 90% of revenues, with the balance represented by smaller production facilities in Kenya, Nigeria and Ethiopia.

Ardagh Chairman, Paul Coulson, said: "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."

Completion of the acquisition is subject to certain conditions, including regulatory approvals that are expected to be obtained in the second quarter of 2022.

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