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Owens-Illinois gives $2.15 billion for Vitro business to enter Mexico

Staff 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
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.

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.