FOR IMMEDIATE
RELEASE
For more information,
contact:
David
Johnson |
Barbara
Owens |
Vice
President, Investor Relations |
Senior
Communications Adviser |
Perrysburg, Ohio, U.S. |
Perrysburg, Ohio, U.S. |
+1 567
336 2600 |
+1 567
3365585 |
dave.johnson@o-i.com |
barbara.owens@o-i.com |
O-I Completes Acquisition of Vitro's Food and
Beverage Business
Perrysburg, Ohio (September 1, 2015) - Owens-Illinois, Inc. (NYSE:
OI) today 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.
# # #
About O-I
Owens-Illinois, Inc. (NYSE: OI) is the world's largest glass
container manufacturer and preferred partner for many of the
world's leading food and beverage brands. The Company had revenues
of $6.8 billion in 2014. Following the acquisition of Vitro's food
and beverage business, the company now employs approximately 27,000
people at 81 plants in 23 countries. With global headquarters in
Perrysburg, Ohio, U.S., O-I delivers safe, sustainable, pure,
iconic, brand-building glass packaging to a growing global
marketplace. For more information, visit o-i.com.
O-I's Glass Is Life(TM) movement promotes the
widespread benefits of glass packaging in key markets around the
globe. Learn more about the reasons to choose glass and join the
movement at glassislife.com.
The Company routinely posts important information
on its website - www.o-i.com/investors.
Forward-looking
statements
This press release contains "forward-looking" statements within the
meaning of Section 21E of the Securities Exchange Act of 1934 and
Section 27A of the Securities Act of 1933. Forward-looking
statements reflect the Company's current expectations and
projections about future events at the time, and thus involve
uncertainty and risk. The words "believe," "expect," "anticipate,"
"will," "could," "would," "should," "may," "plan," "estimate,"
"intend," "predict," "potential," "continue," and the negatives of
these words and other similar expressions generally identify
forward looking statements. It is possible the Company's future
financial performance may differ from expectations due to a variety
of factors including, but not limited to the following: (1)
the Company's ability to integrate the Vitro Business in a timely
and cost effective manner, to maintain on existing terms the
permits, licenses and other approvals required for the Vitro
Business to operate as currently operated, and to realize the
expected synergies from the Vitro Acquisition, (2) risks related to
the impact of integration of the Vitro acquisition on earnings and
cash flow, (3) risks associated with the significant transaction
costs and additional indebtedness that the Company expects to incur
in financing the Vitro Acquisition, (4) the Company's ability to
realize expected growth opportunities and cost savings from the
Vitro Acquisition, (5) foreign currency fluctuations relative to
the U.S. dollar, specifically the Euro, Brazilian real, Mexican
peso, Colombian peso and Australian dollar, (6) changes in capital
availability or cost, including interest rate fluctuations and the
ability of the Company to refinance debt at favorable terms, (7)
the general political, economic and competitive conditions in
markets and countries where the Company has operations, including
uncertainties related to economic and social conditions,
disruptions in capital markets, disruptions in the supply chain,
competitive pricing pressures, inflation or deflation, and changes
in tax rates and laws, (8) consumer preferences for alternative
forms of packaging, (9) cost and availability of raw materials,
labor, energy and transportation, (10) the Company's ability to
manage its cost structure, including its success in implementing
restructuring plans and achieving cost savings, (11) consolidation
among competitors and customers, (12) the ability of the Company to
acquire businesses and expand plants, integrate operations of
acquired businesses and achieve expected synergies, (13)
unanticipated expenditures with respect to environmental, safety
and health laws, (14) the Company's ability to further develop its
sales, marketing and product development capabilities, and (15) the
timing and occurrence of events which are beyond the control of the
Company, including any expropriation of the Company's operations,
floods and other natural disasters, events related to
asbestos-related claims, and the other risk factors discussed in
the Company's Annual Report on Form 10-K for the year ended
December 31, 2014 and any subsequently filed Quarterly Report on
Form 10-Q. It is not possible to foresee or identify all such
factors. Any forward-looking statements in this document are based
on certain assumptions and analyses made by the Company in light of
its experience and perception of historical trends, current
conditions, expected future developments, and other factors it
believes are appropriate in the circumstances. Forward-looking
statements are not a guarantee of future performance and actual
results or developments may differ materially from expectations.
While the Company continually reviews trends and uncertainties
affecting the Company's results of operations and financial
condition, the Company does not assume any obligation to update or
supplement any particular forward-looking statements contained in
this press release.
O-I Logo
O-I Completes Acquisition of Vitro’s Food and Beverage
Business
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Owens-Illinois, Inc. via Globenewswire
HUG#1949144
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