Vitro OCF was Vitros joint venture with Owens Corning engaged in the manufacture and distribution of fiberglass insulation and composite reinforcement products.
Approximately US$5.4 million of the sales price was placed in escrow to secure certain indemnification obligations related to the sale. Thus, at closing, Vitro received approximately US$66.1 million. Pursuant to the terms of the sale, Vitro repaid Vitro OCFs debt of approximately US$22.6 million immediately prior to the sale.
After the sale, Owens Corning will become the sole owner of this Mexican operation, which was
formed in 1957. We are very pleased to complete this important transaction. The sale is consistent with Vitros strategy to focus on its core businesses of Flat Glass, Containers and Glassware said Federico Sada, Vitros CEO.
The transaction meets two important corporate goals. First, it allows us to devote the Companys resources and energy to maintain and develop our glass-oriented businesses throughout the world. Secondly, it provides us with the capital to strengthen our operations and financial position, he concluded.
Vitro OCF and its subsidiaries manufacture a wide range of light-density, fiber glass products
as well as molded pipe, board and composite reinforcements with operations in Mexico City and three (3) manufacturing facilities located in Mexicali, Monterrey, and San Luis Potosi. In 2003 Vitro OCF had consolidated sales of US$63 million.