PERRYSBURG, Ohio, May 31, 2011 /PRNewswire/ -- Owens-Illinois, Inc. (NYSE: OI) today announced the
acquisition of the remaining 21 percent interest in its southern
Brazil glass container company,
Owens-Illinois do Brasil Industria
e Comercio SA (Comercio). The remaining interest was acquired from
Monteiro Aranha SA for approximately $140
million (USD) in cash and gives O-I 100-percent ownership in
Comercio. O-I expects this transaction to be accretive to 2011
earnings.
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Comercio's operations include two plants – one in Sao Paulo and another in Rio de Janeiro. The transaction will allow O-I
to fully reflect the results of Comercio's operations in its
financial statements without a reduction for minority partner
interest. For 2010, Comercio's minority interest represented
approximately $10 million of O-I's
total net earnings attributable to noncontrolling interest
(approximately $18 million of
EBITDA).In addition, O-I streamlined its corporate legal structure
in Brazil.
"Brazil represents a major
component of our global growth strategy due to its rapidly
expanding glass container market, which is one of the largest and
fastest growing areas within O-I," said Al Stroucken, O-I
chairman and CEO. "Consistent with our strategy, we acquired CIV in
northern Brazil in 2010. Now, with
the buyout of our minority partner in the South, O-I fully owns the
leading glass packaging company in Brazil. As a result, we will realize all of
the benefits of our efforts in this dynamic, emerging market."
Forward Looking Statements
This news release contains "forward looking" statements within
the meaning of Section 21E of the Securities Exchange Act of 1934
and Section 27A of the Securities Act of 1933. Forward looking
statements reflect the Company's current expectations and
projections about future events at the time, and thus involve
uncertainty and risk. The words "believe," "expect," "anticipate,"
"will," "could," "would," "should," "may," "plan," "estimate,"
"intend," "predict," "potential," "continue," and the negatives of
these words and other similar expressions generally identify
forward looking statements. It is possible the Company's future
financial performance may differ from expectations due to a variety
of factors including, but not limited to the following: (1) foreign
currency fluctuations relative to the U.S. dollar, (2) changes in
capital availability or cost, including interest rate fluctuations,
(3) the general political, economic and competitive conditions in
markets and countries where the Company has operations, including
uncertainties related to the expropriation of the Company's
operations in Venezuela,
disruptions in capital markets, disruptions in the supply chain,
competitive pricing pressures, inflation or deflation, and changes
in tax rates and laws, (4) consumer preferences for alternative
forms of packaging, (5) fluctuations in raw material and labor
costs, (6) availability of raw materials, (7) costs and
availability of energy, including natural gas prices, (8)
transportation costs, (9) the ability of the Company to raise
selling prices commensurate with energy and other cost increases,
(10) consolidation among competitors and customers, (11) the
ability of the Company to acquire businesses and expand plants,
integrate operations of acquired businesses and achieve expected
synergies, (12) unanticipated expenditures with respect to
environmental, safety and health laws, (13) the performance by
customers of their obligations under purchase agreements, (14) the
Company's ability to further develop its sales, marketing and
product development capabilities, and (15) the timing and
occurrence of events which are beyond the control of the Company,
including any expropriation of the Company's operations, floods and
other natural disasters, and events related to asbestos-related
claims. It is not possible to foresee or identify all such factors.
Any forward looking statements in this document are based on
certain assumptions and analyses made by the Company in light of
its experience and perception of historical trends, current
conditions, expected future developments, and other factors it
believes are appropriate in the circumstances. Forward looking
statements are not a guarantee of future performance and actual
results or developments may differ materially from expectations.
While the Company continually reviews trends and uncertainties
affecting the Company's results of operations and financial
condition, the Company does not assume any obligation to update or
supplement any particular forward looking statements contained in
this news release.
About O-I
Owens-Illinois, Inc. (NYSE: OI)
is the world's largest glass container manufacturer and preferred
partner for many of the world's leading food and beverage brands.
With revenues of $6.6 billion in
2010, the Company is headquartered in Perrysburg, Ohio, USA, and employs more than
24,000 people at 80 plants in 21 countries. O-I delivers safe,
effective and sustainable glass packaging solutions to a growing
global marketplace. For more information, visit
www.o-i.com.
SOURCE Owens-Illinois, Inc.