Owens-Illinois, Inc. announced that it has completed the acquisition of the Vitro food and beverage glass container business from Vitro, S.A.B. de C.V. (BMV: VITROA) in a transaction valued at approximately $2.15 billion.
Vitro is the largest supplier of glass containers in Mexico and manufactures glass containers across multiple end uses, including food, soft drinks, beer, wine and spirits. 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, Texas, which together employ nearly 6,000 people.
"As a leader in the strong and growing Latin American market, the addition of Vitro represents a significant opportunity to extend our global franchise and further build upon our position as the world's leading glass packaging company," said Al Stroucken, chairman and CEO of O-I.
The transaction provides O-I with a competitive position in the attractive glass segment of the packaging market in Mexico, further enhancing O-I's position as the world's foremost glass container producer. O-I expects the transaction to be accretive to earnings and cash flow in the first year. The Company anticipates that in the third year after closing, EPS accretion will reach approximately $0.50 per share.
According to Andres Lopez, O-I's chief operating officer: "Vitro's food and beverage business' current management team has a proven track record of meeting customer needs and serving local markets, and we are pleased that they will continue to lead the business. Our intent is to allow the business to operate much as it has in the past. We are pleased to have completed this transaction earlier than anticipated and - with integration plans well underway - look forward to successfully bringing together our businesses to drive greater value for shareholders."
The transaction has received Vitro shareholder approval, as well as relevant regulatory approvals in the U.S. and Mexico.