Ardagh Glass Packaging-Europe (AGP-Europe), an operating business of Ardagh Group, has agreed to acquire Swedish glass recycler Svensk Glasåtervinning (SGÅ).
The deal is subject to certain conditions and regulatory approvals that are expected in the second quarter of 2024, the company noted.
For over 30 years, SGÅ has collected and recycled glass packaging throughout Sweden and contributes to the country’s 90% glass recycling rate.
'The Perfect Complement'
Martin Petersson, CEO of AGP-Europe commented, “Buying SGÅ is the perfect complement to our glass production in Sweden. It will protect glass recycling and ensure we continue to close the glass loop, securing the supply of recycled glass cullet – one of our most important raw materials for lower-carbon glass packaging.”
Magnus Andersson, CEO of SGÅ added, “Ardagh knows and understands the glass industry, including glass recycling, and as a result, the glass industry in Sweden is fully supportive of the new ownership.
“We look forward to our continuing work with Ardagh to develop long-term goals for the company, and to maintain our position as a world-class glass recycler.”
A recent change in regulation, effective from the start of 2024, requires Swedish municipalities to take over the role of collection and introduce property-based glass collection.
The acquisition will ensure that the glass collected in Sweden is retained within the country for use in glass packaging production and is not exported for processing outside Sweden for other industry applications.
The Deal
AGP-Europe is one of five companies that have been part owners of SGÅ since it was founded in 1986. It will become the sole owner by buying the shares of the other four co-owners.
SGÅ will retain its name and operating model and focus on receiving and recycling glass packaging waste and selling glass cullet.
The Swedish Brewery Association is one of the co-owners selling its shares to AGP-Europe, the company noted.
The CEO of the Swedish Brewery Association, Anna-Karin Fondberg, said, “We, along with the other co-owners, are very pleased to sell to AGP-Europe. They have been crucial for the development of high-quality glass with a high ratio of recycled glass cullet.
“The next step is very important for the Swedish food and beverage sector to secure the supply of sustainable glass packaging with a relatively low CO2 footprint.”
