U.S. glass container manufacturer Owens-Illinois (O-I) intends to buy Mexican peer Nueva Fábrica Nacional De Vidrio, S.A. De C.V.'s container glass manufacturing facility in a cash deal valued at about $188 million.
O-I is acquiring the Nueva Fanal facility, located near Mexico City, from Mexican brewing company Grupo Modelo, a unit of Belgium’s Anheuser-Busch InBev.
The manufacturing plant produces 300,000 tonnes of glass container per year from four furnaces. O-I anticipates the business to contribute around $140 million of revenue.
The company will also enter into a long-term glass supply agreement to continue to supply Grupo Modelo.