Vitro: agreement with Libbey Inc. on Vitrocrisa stake

Vitro, S.A. de C.V. has reached an agreement to sell its 51% interest in Vitrocrisa Holdings, S de R.L. de C.V. and related companies (Vitrocrisa) to Libbey Inc., which currently owns 49% of the Mexic…

Vitro, S.A. de C.V. has reached an agreement to sell its 51% interest in Vitrocrisa Holdings, S de R.L. de C.V. and related companies (Vitrocrisa) to Libbey Inc., which currently owns 49% of the Mexico-based joint venture formed in 1997. The equity sale for USD 80 million plus an additional USD 23 million of inter-company payables and account receivables will represent a total inflow of USD 103 million to Vitro. In addition, there will be a real estate swap with Libbey. As of 31 December 2005 Vitrocrisa had a total debt of USD 67 million which will be refinanced by Libbey. Libbey Inc. will become the sole owner of the Mexican operation on completion of the transaction. “We are very pleased with this important transaction. The sale is consistent with Vitro“s Strategic Plan aimed at reducing the holding company debt and strengthening our financial position and operations”, said Federico Sada, Vitro“s CEO. “We have had a strong and solid partnership with Libbey for the past eight years and I believe that this transaction serves the strategic goals of both companies,” he concluded. With annual sales of USD 192 million in 2005, Vitrocrisa manufactures and distributes glassware for the retail, food service, and industrial segments of the glassware industry, and is the largest manufacturer of glass tableware in Latin America. The completion of the transaction is subject to approval from the relevant authorities and Vitro“s shareholders.