The acquisition is the result of a new strategic relationship with Nestle Waters, the world´s leading bottled water company. The Vergeze plant is located near the Nestle Waters´ Perrier bottling facility and has a long-standing supply relationship with Nestle Waters. Under the terms of the acquisition agreement, O-I will become the leading supplier of glass bottles for the Perrier brand, as well as Nestle Waters´ other water brands worldwide.
O-I has long supplied Nestle Waters´ S. Pellegrino line, and the brand´s CEO is currently featured in O-I´s Glass Is Life(TM) global advertising campaign.
"As a result of this deeper strategic relationship with Nestle Waters, O-I has the opportunity to support some of the preeminent brands in the water segment and reinforce glass´ position in this important category," said Jose Lorente, president of O-I Europe.
O-I announced the intent to acquire the Vergeze plant in November 2010, pending the completion of a restructuring plan to bring the facility´s costs in line with those of other O-I Europe plants.
O-I will pay approximately $15 million related to the acquisition of the Vergeze plant, which employs 132 people. The acquisition is expected to be earnings accretive in 2012.