TOLEDO, Ohio, Feb. 3 /PRNewswire/ -- Owens-Illinois, Inc., (NYSE: OI) announced that it completed today its previously announced acquisition of a controlling interest in AVIR S.p.A., the largest manufacturer of glass containers in Italy. AVIR is also the largest glass container manufacturer in the Czech Republic and the fourth largest in Spain. Its major customers are producers of wine, beer, and food.
Based on AVIR's historical performance, the acquisition is expected to increase O-I's annual sales by about $600 million and make a positive contribution to earnings in 1997.
With the addition of AVIR, O-I's international operations are expected to contribute about 40% of the company's total sales, up from 28% in 1995 and just 18% in 1991. This will establish O-I's rapidly growing international operations as the largest of the company's three major businesses. The other two are the domestic glass container operations and the plastics and closures operations.
O-I is the largest manufacturer of glass containers in the United States, North America, South America, and India and is now the second-largest in Europe. In addition to the new acquisitions, O-I has European affiliates in the United Kingdom, Poland, Hungary, Finland, and Estonia. Each is the largest glass container manufacturer in its respective country.
As announced on December 16, O-I's controlling interest results from its acquisition of AVIR shares controlled by Dr. Natale Maderna, retired AVIR chairman, and members of the Maderna and Ricciardi families. In addition to acquiring the privately-held shares, Owens-Illinois also will initiate a tender offer for the 21% of the shares that are publicly held.
Total consideration for 100% of the AVIR shares is expected to be approximately $580 million and will be financed initially by bank borrowings.
This news release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements are necessarily projections which are subject to change upon the occurrence of events that may affect the business. The Company also points out that acquisitions involve a number of risks that can cause actual results to be materially different from expected results.
SOURCE Owens-Illinois, Inc.
CONTACT: John Hoff of Owens-Illinois, 419-247-1203