O-I Announces $188 Million Acquisition of Glass Packaging Facility in Mexico
Owens-Illinois with global headquarters in Perrysburg, Ohio announced it has entered into a definitive agreement to acquire Nueva FÃ brica Nacional de Vidrio, S. de R.L. de C.V. (“Nueva Fanal”) from Grupo Modelo, a wholly owned affiliate of Anheuser-Busch InBev.
The Nueva Fanal facility is located near Mexico City, Mexico. The plant has four furnaces to produce and supply approximately 300,000 tons of glass containers annually for Grupo Modelo brands, which include Corona, Modelo Especial and Pacifico. The beer brands are owned and distributed in the United States by Constellation Brands. Constellation also owns Robert Mondavi, Kim Crawford, Ruffino, The Prisoner, SVEDKA Vodka, Casa Noble Tequila and High West Whiskey among many other spirits brands.
$188 Million Cash Transaction
The acquisition is a cash transaction valued at approximately $188 million, subject to customary closing conditions, including competition authority approval, and is expected to close during 2019. O-I expects the business to contribute approximately $140 million of revenue and $40 million EBITDA¹ on an annual basis. Incremental synergies are anticipated. Further, O-I will enter into a long-term glass supply agreement to continue to supply Grupo Modelo.
“The acquisition of Nueva Fanal reflects O-I’s strategy to invest in the growth of sustainable glass packaging by partnering with our customers to help enable their growth in premium brands, such as Corona, one of the most popular and fastest growing beer brands globally,” said Andres Lopez, Chief Executive Officer, O-I.
“This investment is in addition to our recently announced nearly 50 percent acquisition of Empresas Comegua S.A. as well as our plans to expand our Gironcourt, France, glass plant,” Lopez said. “These, along with the investment in the Nueva Fanal glass plant, are examples of the near-term strategic growth opportunities we discussed at our November 2018 Investor Day and incorporated into our 2019 outlook.”
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Owens-Illinois has more than 26,500 people at 77 plants in 23 countries, O-I has a global impact, achieving revenues of $6.9 billion in 2018.