Australian packaging company Orora has announced entering into arrangements for the acquisition of 100% of France-based high-quality glass bottles manufacturer Saverglass.

Orora will purchase all the shares of Olympe, Saverglass’ holding company, for an enterprise value of A$2.15bn ($1.37bn).

This enterprise value, the packaging company said, represents an implied multiple of Saverglass’ ‘7.7x earnings before interest, taxes, depreciation, and amortisation (EBITDA) for last 12 months, until 30 June 2023, of €168m ($180m), excluding any pro forma synergies.

The transaction is projected to be mid-single digit earnings per share accretive in the first full financial year of ownership Orora noted.

The latest announcement comes after investment firm Carlyle, a Saverglass’ majority shareholder, granted exclusive rights to Orora for acquiring Saverglass.

Carlyle said that the associated offer and signature of binding documentation is now subject to consultation with employee representative bodies, while the deal is pending for regulatory approvals.

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Orora is expecting this transaction to complete in the last quarter of CY2023.

Saverglass CEO Jean-Marc Arrambourg said: “We see Orora as a natural owner of Saverglass, given high complementarity of two businesses and significant benefits to be realised from combined global network and capabilities.”

Orora said it will fund this transaction via a fully underwritten equity raising of A$1.34bn, consisting of A$450m institutional placement and A$895m 1-for-2.55 accelerated non-renounceable pro rata entitlement offer, combined with A$875m of debt financing.

All new shares under equity raising will be valued at A$2.70 per new share, Orora added.

This per share offer price is at a 21.3% discount on its last closing price of A$3.43 per share on 25 August, considering a A$0.09 per share final dividend.

Last week, Orora requested for voluntary suspension of trading of its ordinary shares to manage its “continuous disclosure obligations”, while it progresses for Saverglass’ acquisition.

Orora CEO Brian Lowe said: “This strategic acquisition further strengthens our existing glass business, establishing Orora as a global player of scale in attractive premium segments.

“I look forward to working with the Saverglass team, led by CEO Jean-Marc Arrambourg as we embark on this journey together.”