Oaktree Capital Management takes majority stake in Verescence

The investment fund Oaktree Capital Management signed a definitive agreement to acquire a controlling 78 % stake in SGD, the world leader in glass bottle manufacturing. The transaction provides Oaktree with an equity injection of €140 million, making it the principal shareholder and reducing SGD’s bank debt by 63 % to €225 million, while also establishing a €100 million revolving credit facility and a further optional €90 million of financing. The deal values the company on a basis that reflects its 2009 revenue of €450–900M, a figure that underscores the scale of the business despite a 20 % decline from the previous year. Oaktree’s investment will fund a five‑year, €293 million capital plan, of which €155 million is earmarked for French operations, to modernise furnace assets, acquire laser‑based quality‑control equipment and automate inventory flows across sites in Sucy‑en‑Brie, Brazil and Mers‑les‑Bains. The strategic rationale centres on restoring product quality – the rejection rate for premium clients such as Chanel and Dior has been halved from roughly 8 % to below 4 % – and on leveraging Oaktree’s operational expertise to improve cash conversion and margin resilience. By taking control of SGD, Oaktree adds a high‑margin, export‑oriented glass packaging platform to its portfolio, positioning the fund to benefit from long‑term demand growth in premium cosmetics and spirits. The restructuring also aligns the capital structure with the planned investments, as the €40 million equity contribution and the credit line free up cash flow for the outlined upgrades without imposing repayment pressure before the end of 2016. Overall, the transaction delivers a decisive balance‑sheet strengthening, a clear path to quality‑driven revenue expansion and a platform for value creation under Oaktree’s active ownership model.