O-I Acquires Remaining Interest in Its Brazilian Operations

The remaining interest was acquired from Monteiro Aranha SA for approximately $140 million (USD) in cash and gives O-I 100-percent ownership in Comercio. O-I expects this transaction to be accretive to 2011 earnings.

6/2/2011 --- Owens-Illinois, Inc. announced the acquisition of the remaining 21 percent interest in its southern Brazil glass container company, Owens-Illinois do Brasil Industria e Comercio SA (Comercio). The remaining interest was acquired from Monteiro Aranha SA for approximately $140 million (USD) in cash and gives O-I 100-percent ownership in Comercio. O-I expects this transaction to be accretive to 2011 earnings.

Comercio’s operations include two plants – one in Sao Paulo and another in Rio de Janeiro. The transaction will allow O-I to fully reflect the results of Comercio’s operations in its financial statements without a reduction for minority partner interest. For 2010, Comercio’s minority interest represented approximately $10 million of O-I’s total net earnings attributable to noncontrolling interest (approximately $18 million of EBITDA). In addition, O-I streamlined its corporate legal structure in Brazil.

“Brazil represents a major component of our global growth strategy due to its rapidly expanding glass container market, which is one of the largest and fastest growing areas within O-I,” said  Al Stroucken, O-I chairman and CEO. “Consistent with our strategy, we acquired CIV in northern Brazil in 2010. Now, with the buyout of our minority partner in the South, O-I fully owns the leading glass packaging company in Brazil. As a result, we will realize all of the benefits of our efforts in this dynamic, emerging market.”