Reaches Agreement with Libby Inc. to Sell Its Stake in Vitrocrisa
Vitro S.A. de C.V. has announced that it has reached an agreement to sell its
51-percent interest in Vitrocrisa Holdings S de R.L. de C.V. and
related companies to Libbey Inc.
Libbey Inc. currently owns 49 percent of the Mexican joint venture
formed in 1997.
According to the Vitro announcement, the equity sale for $80 million
plus an additional $23 million of inter-company payables and account
receivables, will represent a total inflow of $103 million to Vitro.
As of December 31, 2005, Vitrocrisa had a total debt of $67 million,
which will be refinanced by Libbey. The deal also includes a real
Upon completion of the transaction, Libbey Inc. will become the
sole owner of the operation.
"We are very pleased with this important transaction. The sale
is consistent with Vitro's strategic plan, aimed at reducing the
holding company debt and strengthening our financial position and
operations," said Frederico Sada, Vitro's chief executive officer.
"We have had a strong and solid partnership with Libbey for
the past eight years and I believe that this transaction serves
the strategic goals of both companies," he added.