Owens-Illinois Inc. (O-I) recently announced the acquisition of the remaining 21% 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 in cash and gives O-I 100% ownership in Comercio. O-I reportedly expects this transaction to be accretive to 2011 earnings.
Comercio’s operations include two plants, one located in Sao Paulo and the other in Rio de Janeiro. The transaction will reportedly allow O-I to fully reflect the results of Comercio’s operations in its financial statements without a reduction for minority partner interest.
“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, 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.”
For additional details, visit www.o-i.com