Recycling giant Visy has struck a deal with the world’s biggest glass bottle maker, Owens-Illinois Glass, to buy its Australian and New Zealand operations in a $733 million transaction.
Visy will acquire factories in Melbourne, Sydney, Brisbane, Adelaide and Auckland under the deal. OI is the biggest manufacturer of glass bottles and containers in Australia and New Zealand.
The company has 1000 employees across Australia and NZ.
Visy said it was “one of the biggest manufacturing acquisitions by an Australian-owned business in Australian business history”.
“Manufacturing has never been more important to Australia’s future,” said Visy executive chairman Anthony Pratt.
On completion of the deal, Visy said it would employ 7200 people in well-paid manufacturing roles.
“And importantly, we will bring Visy’s sustainability culture aiming to increase recycled content of glass bottles from one third to two thirds,” Mr Pratt said.
The business is headquartered in Melbourne and generated sales of about $754 million in 2019 and EBITDA (earnings before interest, tax, depreciation and amortisation) of about $124 million.
Its property assets will be purchased by Australian Fund Manager Charter Hall.