Vitro, S.A.B. de C.V., leading glass manufacturer in Mexico, has announced the Company’s shareholders have approved Owens-Illinois, Inc’s. US$2.15 billion offer to acquire 100% of Vitro’s Food and Beverages Glass Containers business assets.
Included in the transaction are five Food and Beverages Glass Container manufacturing plants located in Mexico, the operations in Bolivia and the distribution of such products in the United States. The value of the offer is on a cash and debt free basis.
Not included in this transaction are the assets associated with Vitro’s Cosmetics, Fragrances and Toiletries (“CFT”) segment, its equity participation in the Comegua joint venture, in Central America, as well as well as the Company’s Chemical and Machinery and Equipment businesses, with estimated pro forma 2015 consolidated sales of $865 million and EBITDA of $165 million considering the divestiture would have occurred on January first 2015.
“We are grateful for the support of our shareholders as we achieve another milestone in our goal to further increase the value of Vitro,” said Adrián Sada Gonzalez, Vitro’s Chairman of the Board. “We look forward to completing the transaction with Owens Illinois, a company that we admire and a leader in the Food and Beverage Glass Containers industry.”
“This transaction will further strengthen our Company both operationally and financially.” Said Adrián Sada Cueva, CEO of Vitro.
“Over the past five years we have established a culture of cost controls and increased productivity across the organization while consistently providing high quality products and services to our customers, which have enabled Vitro to achieve CAGR growth of 5.7% in EBITDA between 2009 and 2014. The improved financial flexibility and streamlined operations resulting from this pending transaction further supports Vitro’s strong operational focus and will establish a solid base to leverage future growth opportunities.”
The transaction has been already approved by the US Federal Trade Commission, and is still subject to approval from the Federal Competition Commission and the National Foreign Investment Commission in Mexico.