Old Mutual Private Equity is pleased to announce the sale of Consol Holdings to the Ardagh Group, in a landmark transaction for South African Private Equity
Old Mutual Private Equity (“OMPE”), a division of Old Mutual Alternative Investments, is pleased to announce the sale of Consol Holdings to Luxembourg-based Ardagh Group, one of the largest glass producers in the world, for an equity value of approximately ZAR10 B (enterprise value of approximately ZAR17 B), in a landmark transaction for the South African Private Equity industry. All conditions precedent have now been met and the deal closed at the end of April 2022.
OMPE has been an active shareholder in Consol since 2007, when we delisted the business as part of a Private Equity consortium including Brait, Sanlam and management. Since then, Consol has grown significantly over our investment tenure; glass production capacity almost doubled from approximately 600 kt to circa 1,150 kt, turnover grew from ZAR2.5 B to more than ZAR10 B and the business now employs almost 3,000 valued staff members. At the time of our investment, the business was purely South African based. Today, through considered investment and responsible but growth-oriented stewardship, Consol has expanded its operations to Nigeria, Kenya and Ethiopia. We have been privileged to play a key role, alongside management and co-shareholders in the business’s overall growth, not only in terms of geographic expansion across the African continent but also through investing in new greenfield capacity totalling more than ZAR4.5 B.
As a firm, we are proud and privileged to have achieved such exciting growth and a good exit for our investors, whilst working alongside a world-class management team and like-minded shareholder partners.
This deal represents a strong exit for our investors in one of the largest Private Equity exits the country has seen, signalling foreign interest in high quality South African businesses. Jacci Myburgh, Co-Head at OMPE said: “A deal of this magnitude with such a significant global player, represents a landmark transaction for South African Private Equity and South Africa as a whole. Consol is a high quality and important business in the context of South African manufacturing, and we are confident of its future under the stewardship of Ardagh.”
Farhad Khan, Partner at OMPE said: “Consol is a Pan African industrial success story, having grown from a successful South African manufacturer into three other high growth regions on the continent. Glass is a growth industry, given its properties and sustainability credentials, and Africa is a growing continent – we believe that Consol is well positioned for the future. We wish Ardagh and Consol management well in the next chapter of this almost 80-year-old business.”
Consol is the leading producer of glass packaging on the African continent and currently operates seven glass production facilities, boasting in excess of 15 furnaces. It serves a range of leading international, regional, and domestic customers, principally in the beer, wine, spirits, food, and non-alcoholic beverage sectors.
ABOUT OLD MUTUAL PRIVATE EQUITY
Old Mutual Private Equity (OMPE), founded in 2000, is one of the leading private equity managers in South Africa. We aim to deliver superior investment returns by building a diversified portfolio of high-quality private equity investments, operating predominantly in South Africa, with a focus on mid-tier growth partnerships. Collectively we have deployed nearly ZAR12 B (USD776 M) across 34 transactions since 2000 and realised more than ZAR18 B across 20 exits.
