Constellation Brands and Owens-Illinois Complete Acquisition of Nava Glass Plant
17 Dec 2014 --- Constellation Brands, Inc., a leading beverage alcohol company, announced today that it has finalized the joint venture (JV) with Owens-Illinois (O-I) and has completed the acquisition of Anheuser-Busch InBev SA/NV's (ABI) state-of-the-art glass production plant, which is located adjacent to Constellation's brewery in Nava, Coahuila, Mexico.
Constellation has also purchased from ABI a high-density warehouse, land and rail infrastructure at the same site. The purchase price for all of these assets was approximately $300 million. This investment in glass sourcing will help ensure Constellation is well-positioned to support the continued momentum and growth opportunities for its beer portfolio well into the future.
The glass plant currently has one operational glass furnace and the JV plans to scale the plant to four furnaces. When fully operational with four furnaces, this facility is expected to supply more than 50% of the glass needs for Constellation's U.S. beer business. When this expansion is completed, the number of employees working at the plant is estimated to reach approximately 800, up from the approximately 260 employees currently working at the location today.
"The acquisition of the glass plant and the formation of the joint venture play a significant role in our long-term glass sourcing strategy for our beer business," said Rob Sands, president and chief executive officer, Constellation Brands. "This strategy gives us greater control over our glass needs in terms of quality, flexibility, and cost-effectiveness. We look forward to working with O-I and the employees at the glass plant to continue to provide high-quality glass for Constellation's growing beer business. We are also very excited to be investing in the facility, which will likely bring new opportunities to the employees and the Nava community."
