Glass container manufacturer Owens-Illinois (O-I) has purchased a 49.7% stake in Empresas Comegua from Fabricación de Mà quinas for around $119m.
Image: Owens-Illinois has acquired 49.7% stake in Empresas Comegua. Photo: courtesy of rawpixel / Unsplash.
Empresas Comegua is involved in the manufacturing of glass containers for the Central American and Caribbean markets.
Empresas Comegua serves multiple O-I’s global strategic customers and various segments such as food, soft drinks, beer, spirits and pharmaceuticals.
The company has two glass manufacturing facilities, including one in Costa Rica and the other in Guatemala.
O-I said the transaction is expected to be accretive to earnings and cash flow in the first year.
O-I CEO Andres Lopez said: “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.”
Earlier this month, O-I has reported net earnings of $127m for the third quarter of 2018, compared to $133m for the same period last year.
Owens-Illinois said net sales declined 3% to $1.73bn in Q3, compared to $1.79bn in the prior year quarter, largely due to the adverse impact of the stronger US dollar.
Earnings from continuing operations before income taxes were $168m for the third quarter compared with $172m for the same period in 2017.
The company said shipments declined compared with prior year, primarily due to the transfer of production to its joint venture (JV) with Constellation Brands and the impact of the poor 2017 grape harvest in Europe.
In 2015, O-I acquired Mexican company Vitro’s food and beverage glass container business for around $2.15bn.
O-I acquired Vitro’s five plants in Mexico and one in Bolivia under the all-cash deal. The six plants sold to O-I together employ 4,700 people.
Based in Perrysburg of Ohio, O-I supplies glass container products to the major food and beverage brands.
With revenues of $6.9bn in 2017, the company employs over 26,500 people at 78 plants in 23 countries.