The purchase will boost premium French glassmaker Saverglass’ development in North America, while giving Orora Group a European customer base and a premium and ultra-premium offer for wines and spirits.
Investment firm Carlyle is to sell French glassmaker Saverglass to Melbourne-headquartered Orora Group for €1.29bn. The transaction will be funded through equity raising and new debt. Subject to customary conditions and regulatory approval, the deal is is expected to close in the fourth quarter of 2023.
Orora CEO Brian Lowe explained in an investor call that the acquisition of Saverglass represents a "compelling next step in Orora’s growth strategy, expanding and extending our beverage operating footprint geographically at scale and our product capabilities." He added that Saverglass "enhances Orora’s existing footprint in North America and Asia Pacific, while providing new market opportunities through the addition of its European customer base." Saverglass’ premium and ultra-premium glassmaking and decoration offer for wine and spirits will "significantly enhance" Orora’s existing glassmaking capabilities, which are mainly geared to the lower-end of the beverage market.
Saverglass, the centerpiece of Orora’s global glass business unit
Saverglass will become the centerpiece of Orora’s global glass business unit, led by the French glassmaker’s CEO Jean-Marc Arrambourg. Integrating Orora’s glassworks in Gawler, South Australia into Saverglass’ network will contribute to achieving synergies of around A$15m (€8.93m).
Saverglass operates six glassworks and four decoration sites in France, Belgium, Mexico and the UAE. It inaugurated a second furnace at its Mexico plant in January 2023 to tap into the booming tequila and mescal market. The world’s largest glassworks for premium spirits and wines, the site has a production capacity of 200,000 tons.
Saverglass' site in Mexico operates two furnaces geared to premium spirits and wines. ©Saverglass
The French glassmaker posted revenue of €739m for the 12 months to June 2023. Premium spirits represent around 65% of its sales – it supplies to brands including Hennessy, Glenfiddich and Grey Goose - and has a 33% share of the global premium spirits market, according to management consultancy Roland Berger. Sparkling wines account for 26% of Saverglass’ revenue, and still wines 9%.
Growth in premium and super-premium wines & spirits behind the deal
The premium spirits and wine categories continue to outperform the rest of the market, say statistics from beverage market analyst IWSR. While the premium spirits and super-premium spirits segments are posed to reach a CAGR of 3.7% and 5.6% respectively between 2022-2027, value spirits is expected to grow just 0.3% and standard spirits +1.9%. A CAGR of 1.8% for premium wines and 3.2% for super premium wines is forecast for the same period, while value wines will be flat and standard wines will grow 0.4%. Craft spirits, trading up and cocktail culture are all helping to boost the market.