Vitro, S.A.B. de C.V. (BMV: VITROA), a leading North American glass producer headquartered in Monterrey, Mexico acquired Pittsburgh Glass Works' (PGW) automotive original equipment manufacturer (OEM) glass business from LKQ Corporation. The acquisition completes the agreement announced last December for US$310 million, free of cash and debt. The final acquisition price is subject to potential post-closing purchase price adjustments, which are typical for these types of transactions.
Headquartered in Pittsburgh, PGW operates seven manufacturing plants, two satellite facilities and two float glass furnaces in the U.S. It also has one manufacturing plant in Poland and owns an equity participation in two joint ventures, one each in Mexico and China.
The acquisition, combined with the purchase of PPG's former flat glass business completed last October, expands Vitro's float glass manufacturing and fabrication facilities. The transaction solidifies the company's position as the leading glass manufacturer in North America.
Adrian Sada Cueva, Chief Executive Officer of Vitro, said the addition of PGW's original equipment business will enable the company to serve a greater number of customers in the automotive glass business and increase its global coverage.
"The experience and state-of-the-art technology PGW brings to our business will enhance our technical, research and development capabilities," he explained. "It will further strengthen our company and create a business staffed by talented employees and strategically positioned for growth."
Joe Stas, Chief Executive Officer of PGW, said the transaction represents the beginning of an exciting new era for PGW associates and stakeholders.
"Vitro has a sterling reputation throughout the industry as a highly competent and capable glass manufacturer, based on more than a century of glass-making experience across the automotive, architectural and glass container industries. By harnessing the strength of a newly expanded workforce and their technical capabilities, Vitro is committed to creating a next-generation auto glass company focused on innovation and world-class customer service."
The combined automotive glass business will unite its research and development capabilities with those of Vitro Architectural Glass, PPG's former flat glass business unit. The combined staff of engineers and scientists will work primarily at the Vitro Glass Technology Center in Harmar Township, Pennsylvania, near Pittsburgh.
Stas added, "The strategic acquisition is very complementary and will enable us to more effectively serve global automotive customers with enhanced world-class products and services."
About Vitro, S.A.B. de C.V.
Vitro, S.A.B. de C.V. (BMV: VITROA) is the leading glass manufacturer in Mexico and one of the world's major companies in its industry, backed by more than 100 years of experience. Founded in 1909 in Monterrey, Mexico, the Company has subsidiaries in the Americas, offering quality products and reliable services to meet the needs of two businesses: flat glass and glass containers. Companies of Vitro produce, process, distribute, and market a wide range of glass articles, which are part of the daily life of thousands of people. Vitro offers solutions for multiple markets, including architectural and automotive as well as cosmetic, pharmaceutical and toiletries. The Company is also a supplier of chemical products and raw material, machinery, molds and equipment for industrial use. As a socially responsible organization, Vitro works on several initiatives aligned to its Sustainability Model, aiming to create a positive influence in the economic, social, and environmental aspects relevant to its stakeholders, in a responsible corporate management framework. For more information, please visit: http://www.vitro.com