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[April 2006]
Libbey Agreement Over Vitrocrisa Joint Venture
Libbey Inc (Toledo, OH, USA) has announced that it has entered into a definitive agreement to acquire from Vitro SA de CV (Vitro) its 51 percent of Vitrocrisa Holdings S de RL de CV and related companies (Crisa), bringing Libbey's ownership of Crisa to 100 percent. The purchase price for Vitro's equity is US$80 million in cash. Crisa's 2005 sales were approximately US$192 million. Bear, Stearns & Co Inc has served as Libbey's exclusive financial advisor on this transaction.
Crisa, the largest glass tableware manufacturer in Mexico and Latin America, manufactures and markets a wide variety of glass tableware. In addition, Crisa is a leading supplier of glass coffee pots and blender jars. Libbey said that the acquisition was consistent with its growth strategy to be a supplier of high quality, machine-made glass tableware products to key markets worldwide while continuing to optimise its cost structure. It will further allow Libbey to use its proprietary technology and processes to enhance Crisa's capabilities enabling the closer integration of the two companies.
In conjunction with the acquisition of Crisa, Libbey will refinance Crisa's debt of approximately US$65 million as well as its own existing debt. The refinancing plan is expected to include an asset-based revolver and senior unsecured notes. This structure is expected to provide the flexibility needed for Libbey to execute the integration of Crisa, including related capital expenditures and pursue its other strategic initiatives.
Commenting on the acquisition, John Meier, Chairman and CEO, said: "We believe that moving beyond the existing joint venture structure will facilitate progress on many fronts. Opportunities for an improved cost structure, expanded product offering and faster sales growth by leveraging the capabilities of both companies are available. We very much look forward to working more closely with Crisa and its associates in improving our profitability and growth opportunities".
www.libbey.com
ENDS