Owens-Illinois Completes Acquisition of Vitro Glass Container Business

Owens-Illinois Inc (O-I) of Perrysburg, OH has completed the acquisition of Vitro SAB de CV’s food and beverage glass container business in an all-cash transaction valued at approximately US$2.15 billion. The transaction has received Vitro shareholder approval, as well as relevant regulatory approvals in the U.S. and Mexico. The transaction includes Vitro’s five food and beverage glass container plants in Mexico, a plant in Bolivia and the food and beverage business of Vitro Packaging, its North American distribution business based in Plano, TX. The glass container business Vitro’s is left with comprises the assets associated with its CFT (cosmetics, fragrances, and toiletries) segment. The business generated second quarter sales of US$85 million, down from US$87 million in the prior year period. Vitro has announced the expansion of its production capacity of flat glass, through the construction of a new float glass furnace in Mexico, which is estimated to become operational in 2017. The furnace will be added to the current capacity of three furnaces. In addition to this expansion, the float glass furnace operating in Mexicali, will enter a repairing phase in mid-2016 that will also be used to expand its production capacity. The investment in the projects is estimated at US$85 million. Vitro’s flat glass segment generated second quarter sales of US$132 million, a 3% decrease from the same period of 2014.

Volume 29 issue 17

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