A., the second largest glass container manufacturer in Europe, from Glasspack Participations, a company controlled by investment funds advised by CVC Capital Partners.As announced on June 10, the Company received its final regulatory approval from the European Commission after committing to divest two plants (located in Barcelona, Spain, and Corsico, Italy) as part of the transaction.Until these plants are sold, they will be held separately from O-I's assets and will be managed under the supervision of an independent trustee.
Total consideration for the acquisition was approximately 1,160 million euros (US$1,400 million), including the assumption of debt. The Company expects the transaction to be accretive to earnings and cash flow in the first year without synergy savings. The Company expects synergy savings of more than 60 million euros (US$72 million) annually, to be achieved by the end of the third full year.
"We are proud to officially welcome BSN to the Owens-Illinois family as we combine to create the largest glass container manufacturer on four continents," said Steve McCracken, Owens-Illinois Chairman and Chief Executive Officer. "We are determined to execute our integration plan swiftly and efficiently in leveraging these valuable added capabilities."
In 2003, BSN had net sales of approximately US$1.5 billion, which compares to the Company's North American glass sales in 2003 of approximately US$1.8 billion. The acquisition increases O-I's European presence by adding 18 glass container plants for a total of 39 facilities with 84 furnaces and 248 production lines and approximately 9,000 employees.