FOR IMMEDIATE RELEASE
For more information,
contact:
Chris Manuel
Vice President, Investor Relations
1-567-336-2600
Chris.manuel@o-i.com
Janet Galecki
Director of Communications, Americas
1-567-336-1080
Janet.galecki@o-i.com
O-I Announces the
Completion of Acquisition of Glass Packaging Facility in
Mexico;
Expands Presence
in Growing Global Brands
PERRYSBURG, OHIO
(July 1, 2019) - Owens-Illinois, Inc.
(NYSE: OI) today announced it has completed the acquisition of
Nueva Fábrica Nacional de Vidrio, S. de R.L. de C.V. ("Nueva
Fanal") from Grupo Modelo, a wholly owned affiliate of
Anheuser-Busch InBev SA/NV (Euronext: ABI) in a transaction valued
at approximately US$188 million.
The Nueva Fanal facility is located near Mexico
City, Mexico. Currently, this plant has four furnaces to produce
and supply approximately 300,000 tons of glass containers annually
for Grupo Modelo brands serving the local and global export
markets.
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
has entered into a long-term agreement to continue to supply glass
to Grupo Modelo.
"In acquiring Nueva Fanal, O-I continues to
execute its strategy of investing in the growth of sustainable
glass packaging, specifically premium brands, such as Corona, one
the most popular and fastest growing beer brands globally," said
Andres Lopez, Chief Executive Officer, O-I.
"We are pleased to close this transaction and will
be actively working to achieve the operational and financial
synergies we believe this acquisition creates," Lopez added. "We
welcome Nueva Fanal's employees into the O-I family and are
planning a successful integration of the facility into our Americas
region."
The transaction has received the relevant
regulatory approvals in Mexico.
About O-I
At Owens-Illinois, Inc. (NYSE: OI), we love glass
and we're proud to make more of it than any other glass bottle or
jar producer in the world. We love that it's beautiful, pure and
completely recyclable. With global headquarters in Perrysburg,
Ohio, we are the preferred partner for many of the world's leading
food and beverage brands. Working hand in hand with our customers,
we give our passion and expertise to make their bottles iconic and
help build their brands around the world. With more than 26,500
employees at 77 plants in 23 countries, O-I has a global impact,
achieving revenues of $6.9 billion in 2018. For more information,
visit o-i.com.
Forward-Looking
Statements
This press release contains "forward-looking"
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") 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
and the ability of the Company to refinance debt at favorable
terms, (3) the general political, economic and competitive
conditions in markets and countries where the Company has
operations, including uncertainties related to Brexit, economic and
social conditions, disruptions in the supply chain, competitive
pricing pressures, inflation or deflation, and changes in tax rates
and laws, (4) the Company's ability to generate sufficient future
cash flows to ensure the Company's goodwill is not impaired, (5)
consumer preferences for alternative forms of packaging, (6) cost
and availability of raw materials, labor, energy and
transportation, (7) the Company's ability to manage its cost
structure, including its success in implementing restructuring
plans and achieving cost savings, (8) consolidation among
competitors and customers, (9) the Company's ability to acquire
businesses and expand plants, integrate operations of acquired
businesses and achieve expected synergies, (10) unanticipated
expenditures with respect to data privacy, environmental, safety
and health laws, (11) unanticipated operational disruptions,
including higher capital spending, (12) the Company's ability to
further develop its sales, marketing and product development
capabilities, (13) the failure of the Company's joint venture
partners to meet their obligations or commit additional capital to
the joint venture, (14) the ability of the Company and the third
parties on which it relies for information technology system
support to prevent and detect security breaches related to
cybersecurity and data privacy, (15) the Company's ability to
accurately estimate its total asbestos-related liability or to
control the timing and occurrence of events related to outstanding
asbestos-related claims, including but not limited to settlements
of those claims, (16) changes in U.S. trade policies, (17) the
Company's ability to achieve its strategic plan, and the other risk
factors discussed in the Annual Report on Form 10-K for the year
ended December 31, 2018 and any subsequently filed Quarterly Report
on Form 10-Q or the Company's other filings with the Securities and
Exchange Commission.
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 press release.
¹ The Company is unable to present a quantitative
reconciliation of its forward-looking non-GAAP measure, EBITDA, to
its most directly comparable GAAP financial measure, Net Earnings,
because management cannot reliably predict all of the necessary
components of this GAAP financial measure without unreasonable
efforts. Net Earnings includes several significant items, such as
restructuring, asset impairment and other charges, charges for the
write-off of finance fees, and the income tax effect on such items.
The decisions and events that typically lead to the recognition of
these and other similar items are inherently unpredictable.
Accordingly, the Company is unable to provide a reconciliation of
EBITDA to Net Earnings or address the probable significance of the
unavailable information, which could be material to the Company's
future financial results.
O-I_logo_med_grey
Nueva Fanal closing release
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Owens-Illinois, Inc. via Globenewswire
OI Glass (NYSE:OI)
Historical Stock Chart
From Jun 2024 to Jul 2024
OI Glass (NYSE:OI)
Historical Stock Chart
From Jul 2023 to Jul 2024