O-I Glass, Inc. announced that a subsidiary of the company has entered into a definitive agreement to sell Cristar TableTop S.A.S. (“Cristar”) to Vidros Colombia S.A.S., an affiliate of Nadir Figueiredo S.A., a glass tableware producer based in Brazil. The sale would generate gross proceeds of approximately USD 95 million and is expected to close during the first half of 2022, subject to customary regulatory approvals and other closing conditions. Cristar owns a dedicated tableware manufacturing plant in Buga, Colombia, that exports tableware to approximately 40 countries around the world and generated approximately USD 14.6 million of EBITDA during the last twelve months ended September 30, 2021.
“O-I continues to advance its strategy including the company’s portfolio optimization program which will enable future growth in the core business,” said Andres Lopez, O-I Glass CEO. “We are deploying proceeds from the sale of non-core assets to help fund our expansion plan, leveraging our exciting new MAGMA solution, that includes investment with attractive returns.”
The sale of Cristar is consistent with O-I’s ongoing portfolio optimization program to exit non-core operations and further advance its core business. Proceeds from this program are being redeployed to help fund up to USD 680 million of attractive growth opportunities by 2024, including the company’s revolutionary MAGMA innovation, as well as to reduce debt. Including this divestiture, O-I has entered into sales agreements approximating USD 1.1 billion as part of its overall USD 1.5 billion portfolio optimization program. O-I anticipates completing the current program in 2022, ahead of its original 2024 target.
O-I’s expansion plan includes a previously announced USD 100 million investment at its plant in Zipaquirá, Colombia. Following this expansion and the sale of Cristar, O-I expects to have an even stronger and more focused presence in Colombia.
In addition, the company is affirming its previously communicated business outlook, including fourth quarter 2021 adjusted earnings of approximately USD 0.30 to USD 0.35 per share (at October 22, 2021 currency exchange rates) and full year 2021 cash provided by continuing operating activities of at least USD 660 million and free cash flow of at least USD 260 million.