O-I Acquires Brazilian Glass Company

PERRYSBURG, Ohio (September 1, 2010) – Owens-Illinois, Inc. (O-I) today announced the acquisition of Brazilian glassmaker Companhia Industrial de Vidros (CIV), significantly expanding O-I’s reach in South America’s largest container market.

CIV is the leading glass container producer in northeastern Brazil, one of the country’s fastest-growing regions.The acquisition includes two plants in the state of Pernambuco and one in the state of Ceará and boosts O-I’s capacity in Brazil by approximately 50 percent. The plants employ approximately 1,300 people and produce glass containers for the beverage, food and pharmaceutical industries, as well as tableware.
Under the terms of the agreement, O-I is purchasing CIV’s glass container business for $603 million, which includes future tax benefits with an estimated present value of $140 million. These tax benefits include federal and state incentives for development in Brazil’s northeastern region. The all-cash transaction closed today.
In the first full year of operation, O-I expects the acquisition will boost regional net sales by approximately $200 million. The return on investment is expected to exceed O-I’s cost of capital. The purchase price reflects a 5.8 times EBITDA multiple for the first year of operation, excluding the present value of future tax benefits and including estimated net cost savings.
“The acquisition of this well-managed company in South America – our fastest-growing and most profitable region – directly supports our strategy of expanding our presence in emerging markets with robust earnings growth potential,” said Al Stroucken, O-I chairman and CEO. “Our recent expansions in Argentina, China, Malaysia and Vietnam, as well as the opening of new furnaces in Peru and New Zealand, clearly demonstrate our commitment to these rapidly growing regions and the opportunities they offer.”
O-I South America President Andres Lopez says the expanded Brazilian footprint also aligns with unfolding consumer trends and customer growth plans. “Economic development and increased consumer purchasing power is driving significant growth in the Brazilian container market. Our customers are expanding their operations, and this acquisition enables us to serve them, as well as new customers, more effectively. After we’ve implemented our advanced technology and lean manufacturing principles, we fully expect to boost productivity in the new plants,” said Lopez.
Highlights of the acquisition and additional market-related data are available on the O-I Web site at www.o-i.com/investorrelations.
About O-I
Millions of times a day, O-I glass containers deliver many of the world's best-known consumer products to people all around the world. With the leading position in Europe, North America, Asia Pacific and Latin America, O-I manufactures consumer-preferred, 100 percent recyclable glass containers that enable superior taste, purity, visual appeal and value benefits for our customers’ products. Established in 1903, the company employs more than 22,000 people with 78 plants in 22 countries. In 2009, net sales were $7.1 billion. For more information, visit www.o-i.com.
Regulation G
EBITDA consists of earnings before interest income, interest expense, provision for income taxes, noncontrolling interests, depreciation and amortization. EBITDA is not a measurement of financial performance under U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of the Company’s operating performance or any other measures of performance derived in accordance with GAAP. The most directly comparable GAAP financial measure to EBITDA is earnings from continuing operations attributable to the Company. EBITDA, as calculated by the Company, may not necessarily be comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation. Management uses this non-GAAP measure principally for internal reporting, forecasting and budgeting and believes that investors may use it as supplemental information to evaluate a company’s ability to service its indebtedness.

600450 O-I Acquires Brazilian Glass Company glassonweb.com

See more news about:

Others also read

Safti First, San Francisco, leading manufacturer of fire rated glass and framing solutions, is proud to announce the release of the mySAFTI app, an interactive design tool that takes the guesswork out of choosing the correct fire rated glass product.
We look forward to working with you in the New Year and assisting you in any way that we can to ensure the continual success of your business!Best wishes for a Happy Holiday Season and our sincere thanksfor your support and goodwill throughout the year!We will come back with fresh news on January 3, 2011.
The National Fenestration Rating Council (NFRC) announced that Steve Johnson, John McFee, and Joe Jonely will serve as committee chairs for the ratings, accreditation and certification policy committees respectively.
Company signs an exclusive license with Kelowna Motors, a well-established and highly reputable British Columbia- based MAZDA Dealer Diamon-Fusion International, Inc. (DFI Nanotechnology), global developer and exclusive licensor of patented hydrophobic nanotechnologies, announced today it has signed an exclusive license with Kelowna Motors, a well-established and highly reputable British Columbia-based MAZDA dealer, according to Guillermo Seta, corporate vice president and executive director.
The Middle East market is becoming a new and promising destination for local construction material producers to explore in the coming years.
Top Gear Live is a live arena show of the award winning TV program Top Gear. The live show features breath-taking stunts, remarkable special effects and epic driving sequences.

Add new comment