Vitro, S.A. de C.V. announced 2 April 2004 the completion of the sale of its 60% interest in Vitro OCF, S.A. de C.V, the holding company of Vitro Fibras, for USD 71.5 million in cash. Vitro OCF was Vi…
Vitro, S.A. de C.V. announced 2 April 2004 the completion of the sale of its 60% interest in Vitro OCF, S.A. de C.V, the holding company of Vitro Fibras, for USD 71.5 million in cash. Vitro OCF was Vitro“s joint venture with Owens Corning and was engaged in the manufacture and distribution of fiberglass insulation and composite reinforcement products. In a press release, Vitro said approximately USD 5.4 million of the sale price was placed in escrow to secure certain indemnification obligations related to the sale. Thus, at closing, Vitro received approximately USD 66.1 million. Pursuant to the terms of the sale, Vitro repaid Vitro OCF“s debt of approximately USD 22.6 million immediately prior to the sale. After the sale, Owens Corning will become the sole owner of the Mexican operation, which was formed in 1957. “We are very pleased to complete this important transaction. The sale is consistent with Vitro“s strategy to focus on its core businesses of Flat Glass, Containers and Glassware” said Federico Sada, Vitro“s CEO. “The transaction meets two important corporate goals. First, it allows us to devote the Company“s resources and energy to maintain and develop our glass-oriented businesses throughout the world. Secondly, it provides us with the capital to strengthen our operations and financial position”, he said. Vitro OCF and its subsidiaries manufacture a wide range of light-density, fiber glass products as well as molded pipe, board and composite reinforcements with operations in Mexico City and three manufacturing facilities located in Mexicali, Monterrey, and San Luis Potosi. In 2003 Vitro OCF had consolidated sales of USD 63 million.