Owens-Illinois Inc. said it will buy a 76% stake in Avir SpA, Italy“s largest maker of glass containers, and start a tender offer for the 21% stake of AVIR shares that are publicly held, bringing the…
Owens-Illinois Inc. said it will buy a 76% stake in Avir SpA, Italy“s largest maker of glass containers, and start a tender offer for the 21% stake of AVIR shares that are publicly held, bringing the value of the deal to about US$ 580 million. The total cost of all Avir shares will be about US$ 100 million, Owens-Illinois said. The acquisition – expected to be concluded in the first quarter of 1997 – will boost Owens-Illinois“ annual revenue by about US$ 600 million, Owens-Illinois said. It is claimed that the acquisition will make Owens-Illinois the second-largest glass container maker in Europe. It is already the largest in North America, South America, Britain, Poland, Hungary, Finland, Estonia and India. 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, spirits, beer, and food. The company, based in Milan, Italy, is controlled by Chairman Natale Maderna and members of the Maderna and Ricciardi families. Owens-Illinois has provided glassmaking technology and equipment to Avir for 26 years under a series of technical assistance agreements. Owens-Illinois said the acquisition will establish its fast-growing global operations as the company“s largest business segment, accounting for 40% of total sales, up from 28% in 1995 and 18% in 1991.