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

📆 9/3/2024 10:07 PM
📰 FinancialReview

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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.

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