By Giorgos Lampiris
Ideal Holdings is a complete winner from the decision to sell all the shares of Astir Vitogiannis with activity in the manufacture of metal closures to the multinational Guala Closures, managing on the one hand to “take out” the money it allocated for the acquisition of the Attica department stores in 2023, on the other hand to brings liquidity to its coffers for new acquisitions in the near future.The agreed enterprise value for the acquisition is approximately 136 million euros.
The acquisition is subject to various formal closing conditions, including applicable regulatory approvals, and is expected to close in the second half of 2024. This is Ideal’s second subsidiary sale in the group’s new era following the entry of fund Virtus International Partners. We remind you that in 2022 the group sold the mixers company, Three Cents, to Coca-Cola HBC for a price of 45.9 million euros.
Selling at three times the purchase price
Looking back at the main points related to the new agreement, we recall that Ideal acquired Astir Vytogiannis in May 2021 – for 40.2 million euros. With its sale, Ideal manages to get three times more than the price it paid in its acquisition, while the average return is 40% IRR per year. One could say that in this way Ideal is repaying the price of 100 million euros that it allocated for its last investment so far, with the acquisition of Attica Department Stores which manages the attica department stores with a presence in Athens (Citylink, Golden Hall, The Mall) and in Thessaloniki (Mediterranean, Cosmos, Tsimiski).
L. Papakonstantinou: We invest and if someone decides that something is worth more than us, we sell
According to what he mentions in Capital.gr the president of the Ideal Holdings group, Lambros Papakonstantinou regarding this move: “our decision is based on a fairly simple reasoning. We invest in a company, we believe in its potential, we develop it and if someone appears who believes that it is worth more than that for us, then we are willing to sell her”.
“The success lies in the fact that having created goodwill and passing Astir to its next owner, it can move even better in the future,” he adds.
Cooperation with ABInBEV, Coca-Cola, Pepsi, Heineken, Carslberg
It is noted that Astir, which is being acquired by Guala Closures, also directly owns 74.99% of Coleus Packaging in South Africa. Astir supplies ABInBev, the largest brewery in the world (Budweiser, Beck’s Stella Artois) with caps, among others. AB InBeV, which emerged from mergers of breweries in Brazil, South Africa, America and Belgium, also found itself the owner of factories that produce packaging materials for its products, including Coleus. When in 2020 the brewery decided to focus on its core business, namely the production of beer and other alcoholic beverages, it disposed of its holdings in the regional operations, paving the way for Astir Vitogiannis to claim Coleus, which perfectly fit the profile her. Among the companies that Astir supplies to the global beer and soft drinks industry are also Heineken, Carslberg, Pepsi, Coca-Cola.
During 2023 the two companies – Astir and Coleus – sold more than 12.3 billion metal caps, with revenues of 75 million euros, adjusted EBITDA of 19 million euros, profits before taxes of 16 million euros and net debt of 15 million. euro.
Who is Guala Closures?
The acquirer Guala Closures specializes in the production of closures for spirits, wine, olive oil. It has 33 production plants and 7 research centers worldwide. In 2023 it had net revenue of 836 million euros (down 7% from 2022) and adjusted EBITDA was 181 million euros, up 7.5, compared to 2022.
Based on what became known in the context of the transaction, Stelios Vitogiannis, CEO of Astir and grandson of the company’s founder, will remain CEO of the company. He will reinvest as a shareholder now in Guala Closures and report to Guala Closures CEO Mauro Caneschi.
Following the acquisition of Astir, Guala Closures will be able to offer all available types of glass bottle closures worldwide.
Following the completion of Astir’s transfer procedures as regulatory approvals are required, the Guala Closures group will expand its presence in emerging markets characterized by demographic growth and increasing per capita with a focus on the ready-to-eat and non-alcoholic beverage sectors.
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* Ideal: Between 110 and 115 million euros the amount expected to receive from Guala for ASTIR Vitogiannis
