O-I nabs Mexican glass business

Owens-Illinois has completed its acquisition of the Mexico-based food and beverage glass container business Vitro in a $2.15 billion transaction.

Vitro is the largest manufacturer and supplier of glass containers for food, soft drinks, beer, wine and spirits in Mexico. The transaction includes Vitro's five food and beverage glass container plants in Mexico, a plant in Bolivia, and the Texas-based food and beverage business of Vitro Packaging.

O-I chairman and CEO Al Stroucken said the addition of Vitro provided an opportunity to extend the company's global franchise.

O-I expects the transaction to be accretive to earnings and cash flow in the first year, and anticipates that in the third year after closing, EPS accretion will reach approximately $0.50 per share.

The transaction has received Vitro shareholder approval, as well as relevant regulatory approvals in the US and Mexico.