- Allied Glass is a market leader in the UK premium glass
packaging segment, with 2022 Estimated Sales of over £150
million
- Verallia will expand its Northern European manufacturing
footprint with UK presence and reinforce its position in premium
glass bottles for the spirits’ market
Regulatory News:
Verallia (Paris:VRLA), the leading European and the world’s
third largest producer of glass containers for food and beverages,
has signed a binding agreement with an affiliate of Sun European
Partners LLP for the acquisition of Allied Glass, a market leader
in the UK premium glass packaging segment with a focus on the
premium spirits’ end market.
Expanding Verallia’s premium capabilities and geographic
footprint in Northern Europe
With more than 150 years of glass-making expertise each, both
groups share the same strong values – especially care for customers
and teamwork – that guide and inspire their behavior.
This acquisition will enable Verallia to benefit from Allied’s
expertise in premium glass bottles, specifically in the Scotch
Whisky and Gin sectors, and from its established position on the UK
market.
With this transaction, Allied Glass will integrate an
international group, European leader in the glass containers for
the food and beverage sector, which will allow it to take advantage
of its expertise and its long-term vision.
Allied Glass, an industry-leading premium glass
platform
Headquartered in Leeds, Allied Glass is a leading player in the
premium glass packaging market in the United Kingdom, where it
generates over 95% of its revenues, with 4 furnaces located in West
Yorkshire and around 600 employees.
Allied Glass designs, develops and manufactures glass packaging,
benefitting from state-of-the-art extra-white, bespoke color and
decoration capability, with a strong focus on sustainability, based
on an ESG policy with clear targets across all areas and a market
leading use of cullet across all products.
Allied Glass has strong relationships with a diversified
customer base covering blue chip, traditional and emerging brands,
based on a partnership approach to new product development. Allied
Glass is led by a strong management team with significant industry
experience who have successfully grown the Group’s profitability
over the last years.
Allied Glass generated revenue of £138 million in the fiscal
year ended December 2021 and over £150 million of revenues are
estimated for 2022.
Verallia expects the transaction to have an accretive impact on
its Adjusted EBITDA margin reflecting Allied’s strong performance
as well as significant synergy potential between both
businesses.
Commenting on the acquisition, Patrice Lucas, CEO of Verallia,
declared:
“This acquisition of Allied Glass is fully in line with our
strategy which is to accelerate our investments in key markets
while leveraging our industrial, technological and management
expertise to generate synergies. I am convinced that Verallia and
Allied Glass have an outstanding fit as we share common vision and
values. This is a great milestone too, as the Group will be present
on the UK market, I am confident that this combination will create
sustainable value for customers, employees and shareholders.
Finally, I am delighted to welcome Alan Henderson in the Executive
Committee team of Verallia.”
Alan Henderson, CEO of Allied Glass, added:
“Integrating Allied into an international Group, one of the main
world leaders in glass manufacturing for food and beverage, is a
thrilling challenge for Allied. Based on our respective strengths,
the two companies will benefit from strong synergies. Whilst our
customers in the UK market will continue to benefit from the same
level of quality of service locally, we believe we can further
improve our market offering through the support and knowledge of
the wider Verallia group.”
Transaction details
Verallia will acquire 100% of the capital of Allied Glass. The
transaction is valued at approximately £315 million (enterprise
value) and will be financed by Verallia’s existing cash, whilst
maintaining the Verallia Group’s leverage below 2x net
debt/adjusted EBITDA.
Verallia expects to complete the acquisition by
mid-November.
Advisors
Legal: White & Case LLP Financial and Tax: Ernst & Young
Environmental: ERM
About Verallia
At Verallia, our purpose is to re-imagine glass for a
sustainable future. We want to redefine how glass is produced,
reused and recycled, to make it the world’s most sustainable
packaging material. We work in common cause with our customers,
suppliers and other partners across the value chain to develop new
healthy and sustainable solutions for all. With around 10,000
people and 32 glass production facilities in 11 countries, we are
the leading European and the third largest producer globally of
glass containers for food and beverages, providing innovative,
customized and environmentally friendly solutions to more than
10,000 businesses around the world. Verallia produced more than 16
billion bottles and jars and achieved revenues of €2.7 billion in
2021. Verallia is listed on compartment A of the Euronext Paris
stock exchange (Ticker: VRLA – ISIN: FR0013447729) and belongs to
the SBF 120, CAC Mid 60, CAC Mid & Small et CAC All-Tradable
indexes. For more information: www.verallia.com.
Disclaimer
Certain information included in this press release does not
constitute historical data but constitutes forward-looking
statements. These forward-looking statements are based on current
beliefs, expectations and assumptions, including, without
limitation, assumptions regarding present and future business
strategies (including the successful integration of Allied Glass
within the Group) and the environment in which Verallia operates,
and involve known and unknown risks, uncertainties and other
factors, which may cause actual results, performance or
achievements, or industry results or other events, to be materially
different from those expressed or implied by these forward-looking
statements. These risks and uncertainties include those discussed
or identified under Chapter 3 "Risk Factors" in the Universal
Registration Document filed with the AMF on 29 March 2022 under
number D.22-0188 and available on the Company's website
(www.verallia.com) and the AMF's website. These forward-looking
information and statements are not guarantees of future
performances.
This press release includes only summary information and does
not purport to be comprehensive. No reliance should be placed on
the accuracy or completeness of the information or opinions
contained in this press release.
Information related to Allied Glass included in this press
release were furnished by Allied Glass to Verallia in connection
with the acquisition described herein. Financial information
related to Allied Glass have been neither audited nor reviewed by
Verallia's auditors.
This press release does not contain or constitute an offer of
securities for sale or an invitation or inducement to invest in
securities in France, the United States or any other
jurisdiction.
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Verallia Press Office Annabel Fuder & Rachel
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