Owens-Illinois Inc: Attractive Risk/Reward With 20% Upside
May 13, 2015, 7:48 AM
- Owens-Illinois (NYSE:OI) agrees to acquire Vitro’s food and beverage glass container business for $2.15B in a move that will allow OI to expand in the growing market for food packaging in Mexico.
- OI expects the deal to add $0.50 to EPS in the third year after closing and to generate $945M/year in revenue; the deal is expected to close within a year.
- OI will add Vitro’s five Mexican factories and one in Bolivia, and retain the leadership of the company’s food-and-beverage operations.
- OI +2.7% premarket.
Owens-Illinois, Inc. engages in the manufacture and supply of glass containers for beverages. It provides glass packaging to alcoholic beverages, soft drinks, juices, and pharmaceuticals. It operates through the following geographical segments: Europe, North America, Latin America, and Asia... More
Sector: Consumer Goods
Industry: Packaging & Containers
Country: United States
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