Owens-Illinois (O-I) has completed the acquisition of the Vitro food and beverage glass container business from Mexico-based Vitro for $2.15bn.
As part of the transaction, O-I will buy five food and beverage glass container plants of Vitro in Mexico, a Bolivian plant and the food and beverage business of Vitro Packaging.
Based in Plano, Texas, US, Vitro Packaging is the company's North American distribution business.
O-I chairman and CEO Al Stroucken said: "As a leader in the strong and growing Latin American market, the addition of Vitro represents a significant opportunity to extend our global franchise and further build upon our position as the world's leading glass packaging company."
The transaction, which has secured relevant regulatory approvals in the US and Mexico, will enable O-I to gain a position in the glass segment of the Mexican packaging market.
O-I also expects the transaction to be accretive to its earnings and cash flow in the first year. In the third year after closing, EPS accretion is expected to reach about $0.50 a share.
O-I chief operating officer Andres Lopez said: "Our intent is to allow the business to operate much as it has in the past."
O-I currently employs about 27,000 people at 81 plants in 23 countries. Last year, the company reported revenues of $6.8bn.
Vitro supplies glass containers in Mexico and manufactures glass containers across multiple end uses, including food, soft drinks, beer, wine and spirits.
Image: O-I will buy five Mexican food and beverage glass container plants of Vitro. Photo: courtesy of Iamnee via freedigitalphotos.net.