Vitro will buy the flat glass business of PPG. The value of the transaction will be approximately USD$750 million. The transaction will make Vitro a world leader in technology for the Flat Glass Industry and will allow it to participate in the US market, in which today it has no significant presence.The value of the transaction would be approximately USD$750 million, with the addition of 4 manufacturing plants with a total of 5 furnaces in the United States, a research and development center of Flat Glass and 4 distribution and fabrication facilities in Canada.
The Chairman of the Board of Directors of Vitro, Adrián Sada González said, "Through this acquisition we will be putting together more than 200 years of experience in the production of glass and will continue to meet Vitro's commitment to our shareholders and stakeholders of creating value, by acquiring a leader in flat glass and glass coatings technology that participates in one of the most important and high value added markets in the world."Adrián Sada Cueva, CEO of Vitro, said, "We are proud to announce this transaction, which represents a great success for Vitro.
This investment will strengthen our construction glass business, as it will allow us to participate in the US and Canadian markets and in the segment of high performance glass coatings in which we have no significant presence. The combination of the talented teams from both companies is expected to result in a business with greater growth potential.”
This operation, based on 2015 figures, would have taken Vitro to a sales and EBITDA Pro forma figures of USD$1,444 million and USD$321 million respectively. The Debt/ EBITDA Proforma ratio would have been 1.61 times and the Net Debt / EBITDA Proforma ratio 1.06 times, which reaffirms our commitment to maintain a very solid financial balance Sheet.
The transaction is subject to the usual approvals.
Alfaro, Dávila y Ríos, SC LLP acted as exclusive financial advisor and Cleary Gottlieb Steen & Hamilton as legal advisor, both for Vitro in this transaction.