Verallia Signs Agreement to Acquire UK Firm Allied Glass
Verallia, which is the largest producer of glass containers for food and drinks in Europe and the third largest in the world, has signed a binding agreement with an affiliate of Sun European Partners LLP to buy Allied Glass, which is the market leader in the UK premium glass packaging segment and focuses on the end market for premium spirits.
With over 600 employees and four furnaces in West Yorkshire, Allied Glass is a major player in the premium glass packaging market in the United Kingdom, where it makes more than 95% of its revenue.
Allied Glass designs, develops and manufactures glass packaging with a strong focus on sustainability with an ESG strategy with explicit targets across all areas and a market-leading use of cullet across all products.
Based on a collaborative approach to innovative product development, Allied Glass has excellent partnerships with a diverse customer base. It is led by a competent management team with extensive industry experience that has effectively increased the Group's profitability in recent years.
Allied Glass made £138 million in revenue in the fiscal year that ended in December 2021, and revenue of more than £150 million is expected in 2022.
Verallia anticipates that the deal will increase its Adjusted EBITDA margin owing to Allied's outstanding performance and significant synergy opportunities between the two businesses.
Patrice Lucas, CEO of Verallia, said:
“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'm sure that Verallia and Allied Glass are a great match because we have the same goals and values. This is a great milestone too, as the Group will be present in the UK market. I'm sure that this combination will be good for customers, employees, and shareholders in the long run. Finally, I am delighted to welcome Alan Henderson to the Executive Committee team of Verallia.”
Alan Henderson, CEO of Allied Glass, commented:
“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.”