Australia and New Zealand glass container business unit sold
O-I has entered into a definitive agreement to sell its Australia and New Zealand business unit to Visy Industries, one of the world’s largest privately-owned packaging and resource recovery companies.
The deal, which is worth almost A$1 billion and is expected to be completed by the end of July, is one of the biggest manufacturing acquisitions by an Australian-owned business in Australian business history.
O-I ANZ is the largest manufacturer of glass containers in Australia and New Zealand, with five manufacturing facilities located in Adelaide, Brisbane, Melbourne, Sydney and Auckland and a recycled glass processing plant in Brisbane. Headquartered in Melbourne, the business generated sales of approximately A$754 million and EBITDA of approximately A$124 million in 2019.
“Manufacturing has never been more important to Australia’s future” commented Visy Executive Chairman, Anthony Pratt (shown right), who owns the business together with his sisters Heloise Waislitz and Fiona Geminder. Post acquisition, Visy will employ 7200 people. “And importantly, we will bring Visy’s sustainability culture to O-I, aiming to increase recycled content of glass bottles from one third to two thirds” Mr Pratt confirmed.
“The sale of our ANZ operations is consistent with our strategy to properly align our business with the interests of our global customer base, improve financial flexibility and maximise shareholder value” Andres Lopes, O-I CEO confirmed. “O-I will continue to develop its leading market positions across Europe and the Americas, as well as the company’s interests in Asia. The sale of ANZ follows an in-depth strategic review of our global business portfolio and operating structure, which is now substantially complete following this transaction. We received a full and fair price for ANZ and this sale represents a significant milestone in our business transformation as we optimise our structure and prioritise debt reduction” he added.
“We believe Visy is the best fit for our ANZ business, our customers and our employees. Visy is a well-established leader in providing high quality, innovative and closed loop packaging solutions that has operated in Australia for more than 70 years.”