Old Mutual Private Equity exits Consol Holdings

Old Mutual Private Equity (OMPE), a division of Old Mutual Alternative Investments, announced 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 billion (about $617.2 million), and an enterprise value of approximately ZAR17 billion (about $1 billion). 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 it delisted the business as part of a private equity consortium including Brait, Sanlam and management. Since then, Consol has grown significantly over OMPE’s investment tenure; glass production capacity almost doubled from approximately 600 kt to circa 1,150 kt, turnover grew from ZAR2.5 billion to more than ZAR10 billion and the business now employs almost 3,000 staff members.

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.

At the time of OMPE’s investment, the business was purely South African based. Today, Consol has expanded its operations to Nigeria, Kenya and Ethiopia.

This deal represents a strong exit for OMPE’s 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.”

Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.