Sale of Orora Packaging Solutions
Jarden acted as Joint Financial Advisor to Orora on the successful sale of its North American Packaging Solutions business.
Expertise
M&A advisory, corporate carve-out strategy, and managing complex sale processes to maximise value.
Strategic Context
On 4 September 2024, Orora Limited (ASX:ORA) announced a binding agreement to divest its Orora Packaging Solutions (OPS) business to Veritiv Corporation, a portfolio company of Clayton, Dubilier & Rice (CD&R), for US$1.2 billion (A$1.775 billion).
The transaction, which represents an FY24A cash EBITDA multiple of 9.9x, is expected to deliver approximately A$1.687 billion in net cash after tax, transaction costs, and customary closing adjustments.
The sale was successfully completed in Q4 2024, marking a transformative milestone for Orora.
Execution
Jarden served as Joint Financial Advisor to Orora, delivering a highly structured, value-maximising transaction. Key highlights of the execution included:
- Strategic valuation achieved: Secured a 9.9x EBITDA multiple, representing a premium to Orora’s trading multiple and comparable transactions.
- Regulatory and execution risk management: Ensured full compliance with antitrust requirements, minimising transaction risks.
- Balance sheet optimisation: Enabled Orora to strategically realign its capital structure.
Jarden’s direct engagement in negotiations with Veritiv and CD&R ensured a seamless process, securing favourable terms and an outcome for Orora.
Outcome
The sale of Orora Packaging Solutions to Veritiv:
- Transforms Orora into a more focused and higher margin specialty beverage packaging business
- Enables Orora to reset its balance sheet, providing flexibility to pursue value-accretive organic growth opportunities
- Allows Orora to distribute surplus proceeds to shareholders over time in a tax efficient manner
This transaction highlights Jarden’s expertise in managing complex cross-border M&A advisory, securing a transformational outcome for Orora and its stakeholders.
