Portuguese glass manufacturer BA Glass has made significant strides in its global expansion by acquiring assets in Mexico and the United Kingdom for a total of 380 million euros. This move marks the company’s first production venture outside Europe and strengthens its position in the glass recycling sector.
Major Acquisitions
BA Glass has acquired a 60% stake in Vidrio Formas, a Mexican company specializing in tequila bottles, for 224.6 million euros. This acquisition marks BA Glass’s entry into the American continent, adding two production centers near Mexico City to its portfolio. The deal includes an option for BA Glass to acquire the remaining shares in the future.
In the United Kingdom, BA Glass has purchased 100% of Recresco Limited, a glass recycling unit located in Nottinghamshire, for 154.8 million euros. This acquisition is expected to boost BA Glass’s recycling capacity by 50%, reaching approximately 350,000 tons per year.
Financial Performance
In the previous year, BA Glass achieved record consolidated sales of 1.523 billion euros across 70 countries, a 6.4% increase from the previous year. The company’s profits more than doubled, reaching 380 million euros, driven by favorable pricing in the first half of the year.
Despite facing challenges such as rising energy costs, BA Glass managed to recover some of its lost profitability. The company’s EBITDA reached 533.4 million euros, with a margin of 35%, although financial losses amounted to 22.2 million euros due to increased capital costs.
Operational Challenges and Investments
BA Glass faced a slowdown in demand, leading to partial production halts to manage stock levels. Nevertheless, the company made its largest-ever investment of 203 million euros, focusing on environmental commitments and digitalization. Key projects included a new furnace in Romania and the refurbishment of another in Bulgaria.
Leadership Transition
The acquisitions were finalized under the leadership of former CEO Sandra Santos, who was succeeded by Tiago Moreira da Silva in February. Paulo Azevedo, the chairman, praised Santos for her contributions and expressed confidence in Moreira da Silva’s ability to lead the company into a new phase of growth and innovation.
Future Outlook
BA Glass continues to innovate, introducing 56 new products last year, 20% of which are part of an internal program to reduce glass usage. The company aims to maintain its investment plans despite market challenges, focusing on sustainability and operational efficiency.
