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Vitro accepts O-I offer for its Glass Container's Food and Beverages division

Posted on May 13, 2015

San Pedro Garza García, Nuevo León, May 13, 2015.- Vitro, S.A.B. de C.V. (BMV: VITROA), leading glass manufacturer in Mexico, announced that today it has signed an agreement with Owens-Illinois, Inc. (NYSE: OI) accepting a bid to sell its Food and Beverages Glass Containers business.

The transaction is valued, cash and debt free, at US $2.15 billion. Included in the sale are five Food and Beverages Glass Container manufacturing plants in Mexico, one plant in Bolivia and the distribution of such products in the United States.

Assets in connection with Vitro’s Cosmetics, Fragrances and Toiletries (“CFT”) segment, the Company’s Machinery and Equipment business, as well as its equity participation in the Comegua joint venture, in Central America, are not included in this transaction.

Commenting on this transaction, Vitro’s Chairman of the Board, Adrian Sada Gonzalez said, "This transaction confirms the strong commitment of our Company to its shareholders, creditors, employees and other stakeholders, as we continue to take strategic actions to further increase the value of Vitro. We are pleased to reach this agreement with Owens-Illinois, a corporation that we admire, respect and a leader in the Food and Beverages Glass Containers industry".

"This is an important step for Vitro’s consolidation", said Adrian Sada Cueva, CEO of the company, "we are convinced that this decision will further strengthen our Company, as it will allow us to improve our financial position and focus on the market segments where we’ll keep participating. We have taken a very important strategic action which culminates after a thorough and diligent process that took more than eight months. We are confident that this transaction will offer our employees the opportunity to join and grow in Owens-Illinois, a great company and highly regarded in the industry”.

“We have long admired Vitro’s business, and this transaction marks an important strategic step for O-I in that it allows us to establish a strong position in the attractive glass container segment in Mexico,” said Al Stroucken, chairman and CEO of O-I. “Vitro’s leading position, long-term customer relationships and proven record of innovation and new product development will enable us to capitalize on commercial opportunities in Mexico.”

This transaction allows Vitro to maintain solid financial results and growth opportunities, with estimated pro forma 2015 sales of $865 million and EBITDA of $165 million after the divestiture.

The transaction is subject to approval from Vitro’s General Shareholder’s Meeting; Federal Competition Commission and the National Foreign Investment Commission, and in the U.S. from the Federal Trade Commission.

O-I is the world's largest glass container manufacturer, it employs approximately 21,100 people at 75 plants in 21 countries.

Alfaro, Dávila y Ríos, SC LLP acted as exclusive financial advisor and Cleary Gottlieb Steen & Hamilton as legal advisor, both for Vitro in this transaction.

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