Australian glass manufacturer Orora will pay US$1.39 million (AU$2.2 billion, €1.29 billion) for its acquisition of French high end glassmaker Saverglass.

Saverglass was purchased by private equity group Carlyle in 2016 and manufactures premium glassware including for luxury spirits and wine makers like Grey Goose, Hennessy and Rhum Clement, according to an investor presentation.

Orora will fund the purchase with a A$450 million institutional placement, a A$895 million 1-for-2.55 accelerated non-renounceable pro-rata entitlement offer, as well as A$875 million of debt financing, it said in a statement.

Saverglass has annual revenue of about $1.2 billion and operates six factories in France, Belgium, Mexico and the United Arab Emirates, with heavy investment in its Mexico glassworks to bolster expansion in the tequila market.

Orora said the integration of the two businesses would deliver $15 million in synergies and the deal was being struck at an adjusted EBITDA multiple of 7.7 times for the 12 months ended June 30.

Glass International revealed last week of Orora's intention to buy the French glass manufacturer Saverglass.