Owens-Illinois, Inc. (NYSE: OI) today announced that it has acquired a just over 49.7 percent interest in Empresas Comegua S.A. from Fabricación de Màquinas, S.A. de C.V., a wholly owned subsidiary of Vitro, S.A.B. de C.V. (BMV: VITROA).
Empresas Comegua S.A. is the leading manufacturer of glass containers for the Central American and Caribbean markets. The business serves many of O-I’s global strategic customers and various segments including food, soft drinks, beer, spirits and pharmaceuticals. Operations include two glass manufacturing facilities – one in Costa Rica and another in Guatemala.
According to Andres Lopez, O-I’s chief executive officer: “The Comegua transaction builds off the acquisition of O-I Mexico in 2015 and complements our existing footprint across the Americas which now extends from Canada to Argentina. With this move, O-I is expanding into new and growing glass markets in Central America and extending its market presence in the Caribbean.”
The purchase price of $119 million is adjusted for net debt and is based on an enterprise value of just under 6x FY18E EBITDA prior to any synergies.
The transaction is expected to be accretive to earnings and cash flow in the first year.