Ardagh in $1bn Africa expansion

Ardagh chairman Paul Coulson. The Irish-founded glass and metal packaging group Ardagh has agreed to buy South African company Consol Holdings.

Irish-founded glass and metal packaging group Ardagh has agreed to buy South African company Consol Holdings in a deal worth $1bn (€890m).

The move marks North American and European-focused Ardagh's expansion into Africa.

Consol is the leading producer of glass packaging in Africa. 

Ardagh has agreed a purchase price of $635m, with Consol’s existing debt of $360m bumping up the overall deal value to $1bn.

Consol generated sales of $566m in its last financial year, which ran to the end of last June, with 90% of its revenues generated from its home market of South Africa and the remainder from its smaller operations across Kenya, Nigeria, and Ethiopia.

Glass consumption in Consol’s markets is projected to continue to increase, driven by long-term trends; including population growth, rising income levels and shifts to premium one-way sustainable glass packaging.

Completion of the acquisition is reliant on regulatory approvals that are expected to be obtained in the second quarter of 2022.