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Vitro Reaches Agreement with Libbey Inc. to Sell its Stake in Vitrocrisa
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Vitro, S.A. de C.V. announced that it has reached an agreement to sell its 51 percent interest in Vitrocrisa Holdings, S de R.L. de C.V. and related companies (Vitrocrisa) to Libbey Inc., which currently owns 49 percent of this Mexico based joint venture formed in 1997.
The Equity sale for US$80 million plus an additional US$23 million of intercompany payables and account receivables will represent a total inflow of US$103 million to Vitro. In addition, there will be a real estate swap with Libbey. As of December 31, 2005 Vitrocrisa had a total debt of US$67 million which will be refinanced by Libbey.
After the transaction is completed, Libbey Inc. will become the sole owner of this Mexican operation.
"We are very pleased with this important transaction. The sale is consistent with Vitro's Strategic Plan aimed at reducing the holding company debt and strengthening our financial position and operations", said Federico Sada, Vitro's CEO.
"We have had a strong and solid partnership with Libbey for the past eight years and I believe that this transaction serves the strategic goals of both companies," he concluded.
With annual sales of US$192 million in 2005, Vitrocrisa manufactures and distributes glassware for the retail, food service, and industrial segments of the glassware industry, and is the largest manufacturer of glass tableware in Latin America.
The completion of this transaction is subject to approval from governmental authorities and Vitro's shareholders.
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April 4th, 2006
Source: Vitro |
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