ORA ASX: Orora shares jump after Veritiv buys its US packaging business for $1.78 billion

📆 04/09/2024 05:07:00
📰 FinancialReview

⏱ Reading Time:
32 sec. here
2 min. at publisher
📊 Quality Score:
News: 16%
Publisher: 90%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Chief executive says it is better off as a specialist glass bottle and aluminium can maker, and is unclear if Lone Star will return with another buyout bid.

Glass bottles and cans maker Orora will cut debt and step up investment in a can manufacturing plant in Queensland with the $1.78 billion proceeds from the sale of its North American business.

, a 126-year-old glass bottle-making business in France. That acquisition has caused some headaches for the company and been a drag on its share price, which opened the door for a buyout bid for Orora by US private equity group Lone Star. With the newfound funds, Orora intends to bring forward a $130 million capital spend on an expansion of an existing can manufacturing plant at Rocklea on the outskirts of Brisbane.

Orora had been undertaking a strategic review of its North American packaging business months before the Lone Star approach. The sale to Veritiv was on a multiple of 9.9 times EBITDA for 2023-24.

Write Comment

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

ASX earnings season: ASX investors flood back as earnings season soothes market panicStrong dividends and signs that consumers were still spending fuelled a recovery from a shock sell-off this month, with the ASX 200 back near record highs.
Source: FinancialReview - 🏆 2. / 90 Read more »