Vitro, S.A. de C.V has completed the sale of its 51% interest in Vitrocrisa Holdings, S de R.L. de C.V. and related companies (Vitrocrisa) to Libbey Inc. for USD 109 million, the Mexican glass major s…
Vitro, S.A. de C.V has completed the sale of its 51% interest in Vitrocrisa Holdings, S de R.L. de C.V. and related companies (Vitrocrisa) to Libbey Inc. for USD 109 million, the Mexican glass major said 16 June 2006. Libbey is now the sole owner of this joint venture, which was formed in 1997. Libbey said the acquisition was paid for with a private offering by Libbey Glass Inc. division and its subsidiaries. Libbey used the proceeds to repay virtually all of its debt as well as Vitrocrisa“s debt, related fees, expenses and redemption premiums. The total cash inflow to Vitro of USD 109 million is made up of USD 80 from the equity sale, plus approximately USD 18 million of intercompany receivables and USD 11 of intercompany debt. Additional to the USD 11 million of intercompany debt, Vitrocrisa“s total outstanding bank debt, as of 31 May 2006, was USD 62 million. “We are very pleased to complete this transaction with Libbey. The sale meets two important goals: it provides us with capital to reduce the holding company debt and strengthening of our financial position, and it allows us to devote the management“s energies to the maintenance and development of our core businesses, Flat Glass and Glass Containers”, said Vitro CEO Federico Sada. “This is another in a series of planned steps that will help us take Vitro into a new era,” concluded Mr. Sada. 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.