Owens-Illinois, Inc., the largest manufacturer of glass containers in the world, announced 18 November 2004 that it has signed a definitive agreement to sell two of its European glass container plants…
Owens-Illinois, Inc., the largest manufacturer of glass containers in the world, announced 18 November 2004 that it has signed a definitive agreement to sell two of its European glass container plants to Vidrala, S.A., of Alava, northern Spain. The sale is subject to various regulatory approvals, including those of the European Commission. As announced in June 2004, Owens-Illinois committed to divest the Barcelona (Castellar), Spain, and Corsico, northern Italy, glass plants to secure the European Commission“s approval of the company“s acquisition of BSN Glasspack, S.A. Cash proceeds from the sale will be approximately EUR 138 million (USD 179 million) and will be reinvested in the company“s manufacturing facilities or used to repay bank debt under the company“s secured credit facility. The sale transaction is expected to close in the 1Q of 2005. “We are pleased to reach this important milestone in the sale process required by the commission. The proceeds of the sale will support our key priority to improve liquidity and reduce debt,” said Steve McCracken, Owens-Illinois Chairman and Chief Executive Officer. “These two facilities are a good strategic fit for Vidrala, a leading and growth-oriented glass container manufacturer in Europe.”