Vitro completes sale of its Food and Beverage glass containers division
San Pedro Garza Garcia, Nuevo Leon, September 1st 2015.- Vitro, S.A.B. de C.V. (BMV: VITROA), the leading glass manufacturer in Mexico, has successfully concluded the sale of its Food and Beverage Glass Containers business to Owens-Illinois, Inc. (NYSE: OI).
The transaction was approved by the governing bodies of both companies and by the relevant regulatory authorities in Mexico and the United States. This completes the transfer of the Food and Beverages Glass Containers business from Vitro to O-I.
The transaction, valued, cash and debt free at US $2.15 billion, includes five glass container plants located in Mexico, one plant in Bolivia and a distribution company in the United States.
Part of the proceeds of the transaction were used to prepay the 2018 Notes ($800.4 million dollars), the Fintech Note ($200 million dollars) and the credit agreement with Crédit Agricole CIB ($21.9 million dollars) as well as the accrued interests to the payment date.
Vitro will continue performing as a global leader in the Glass Container business for Cosmetics, Fragrances, and Pharmaceutical, as well as in the Flat Glass segments including Automotive and Construction, as well as business-related with chemicals through Industria del Alcali and manufacturing molds and machinery through Fabricacion de Maquinas. It will also maintain its joint venture in the Comegua Companies, a holding company that operates production plants in Central America and supplies glass containers to the soft drinks, food, beer, and wine markets throughout the region and the Caribbean.
Adrian Sada Gonzalez, Chairman of the Board of Vitro, said that "in this new stage we wish the best for O-I as they start operations in Mexico and especially thank our colleagues, who join this global leader, for all these years of service to our company, in which they gave their energy and talent. We are sure they will have great opportunities of development and wish them all success in their new phase"
Adrian Sada Cueva, CEO of Vitro, said, "this operation will position us as a financially stronger company. The new Vitro will be better prepared to capitalize on growth opportunities in the future and to better face the challenges of our industries."
"We also wish to thank our customers from the Division of Food and Beverage Glass Containers, for all these years in which they honored us with their trust and support. We can give certainty, that now with O-I, they will have an ally with the ability and experience to meet all their needs and business challenges."