Glass packaging provider Owens-Illinois (O-I) has agreed to acquired Nueva FÃ brica Nacional de Vidrio (Nueva Fanal) in a deal valued at around $188m.
Nueva Fanal has glass packaging facility near Mexico City, which will help O-I to expand its operations in the region.
Nueva Fanal facility features four furnaces that produce and supply around 300,000 tons of glass containers per annum for Grupo Modelo brands such as Corona, Modelo Especial and Pacifico.
O-I said it expects the business to contribute around $140m of revenue and $40m EBITDA on an annual basis.
Subject to customary closing conditions, the deal is expected to be completed during this year.
O-I will also sign a long-term glass supply agreement with Grupo Modelo to continue the business relation with the company.
According to O-I, glass is made from three natural ingredients such as sand, limestone and soda ash, as well as it can take on a range of shapes, colors and textures.
O-I CEO Andres Lopez said: “The acquisition of Nueva Fanal reflects O-I’s strategy to invest in the growth of sustainable glass packaging by partnering with our customers to help enable their growth in premium brands, such as Corona, one of the most popular and fastest growing beer brands globally.”
“This investment is in addition to our recently announced nearly 50 percent acquisition of Empresas Comegua S.A. as well as our plans to expand our Gironcourt, France, glass plant.
In November 2018, O-I purchased a 49.7% stake in Empresas Comegua from FabricaciÃ³n de MÃ quinas for around $119m.
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.
Based in Perrysburg of Ohio, O-I supplies glass container products to the major food and beverage brands. The company provides glass packaging for different products such as beer, wine, spirits, food and non-alcoholic beverages.
With revenues of $6.9bn in 2018, the company employs over 26,500 people at 78 plants in 23 countries.