O-I buys Brazil's No. 3 glassmaker for $603M

9/2/2010

Owens-Illinois Inc., a Fortune 500 firm in Perrysburg which makes glass bottles, said Wednesday it bought Brazil's third-largest glassmaker for $603 million in cash as part of a plan to expand in emerging markets.

The price paid for Companhia Industrial de Vidros includes $140 million of tax benefits that include federal and state incentives for development in Brazil's northeastern region, the suburban Toledo company said.

“If we really want to keep momentum and growth, we've got to go into the emerging and developing markets,” Chief Executive Officer Al Stroucken said.

Growth in emerging markets is key for the company to meet its sales goal of $9.5 billion in 2012, up from $7.1 billion last year, Mr. Stroucken said. The purchase adds to expansions this year in China, Malaysia, Vietnam, and Argentina.

Companhia Industrial de Vidros will add $200 million of sales next year and employs 1,300 people. The acquisition increases O-I's operations in Brazil by 50 percent, the company said.