Vitro to acquire PPG’s Flat Glass business

Date: 22 July 2016

Vitro, S.A.B. de C.V. , hereinafter “Vitro” or the “Company”, the leading glass producer in Mexico, announced the signing of a contract to acquire the assets of the flat glass business from PPG.

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.

600450

www.vitro.com

2016-07-22T13:00:00

Vitro to acquire PPG’s Flat Glass business glassonweb.com

Others also read

MORE...

Solarban® 65 glass delivers a solar heat gain coefficient (SHGC) of 0.35 and visible light transmittance (VLT) of 70%, while maintaining a crisp, clear, color-neutral aesthetic.

Vitro Architectural Glass Introduces Additional Low-E Option, Solarban® 65 Glass

Vitro Architectural Glass has added a new option, Solarban® 65 glass, to its family of high-performance, solar control, low-e glasses.

VacuMax™ VIG dons the newly renovated Hugel Welcome Center in Markle Hall on the campus of Lafayette College in Easton, PA. It’s the first project in the U.S. to feature VacuMax™ VIG by Vitro Architectural Glass. (Photography: Jim Cunningham)

VacuMax™ Vacuum Insulating Glass Wins Top Product of the Year Award

VacuMax™ Vacuum Insulating Glass by Vitro Architectural Glass Awarded Prestigious Recognition by Environment+Energy Leader

Solar control low-e coatings like Solarban® 70 glass, featured at UC San Diego’s Living Learning Neighborhood, deliver a return on carbon by dramatically reducing a building’s operational carbon every year.

Vitro Architectural Glass Updates EPDs to Meet Low Embodied Carbon Standards

Vitro Architectural Glass achieves Top 20% LEC rating with updated EPDs.

Vintage Views: One PPG Place (far right). (Courtesy of Vitro Architectural Glass)

The “Crown Jewel” of Pittsburgh’s Skyline, PPG Place, Turns 40

For 40 years, One PPG Place – a shimmering neo-gothic 635-foot tower with iconic spires designed by world-renowned architect Philip Johnson – has defined and shaped Pittsburgh's skyline, becoming an integral part of the city's identity.