Owens-Illinois gives $2.15 billion for Vitro business to enter MexicoStaff writer ▼ | September 3, 2015
Owens-Illinois (O-I) has completed the acquisition of the Vitro food and beverage glass container business from Vitro, S.A.B. de C.V. in a transaction valued at approximately $2.15 billion.
Acquisition O-I is spreading in Mexico
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.
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.
The transaction has received Vitro shareholder approval, as well as relevant regulatory approvals in the U.S. and Mexico. ■