Completes Sale of Interest in Vitrocrisa
Vitro, S.A. de C.V. has announced that it has completed the sale
of its 51 percent interest in Vitrocrisa Holdings, S de R.L. de
C.V. and related companies to Libbey Inc. for US$109 million. Libbey
is now the sole owner of this joint venture, which was formed in
The total cash inflow of US$109 million is comprised of US$80 from
the equity sale, plus approximately US$18 million of intercompany
receivables and US$11 of intercompany debt. Additional to the US$11
million of intercompany debt, Vitrocrisa's total outstanding bank
debt, as of May 31, 2006, stood at $62 million (US).
"We are very pleased to complete this transaction with Libbey.
The sale meets two important goals: it provides us with capital
to reduce the holding company debt and strengthening of our financial
position, and it allows us to devote the management's energies to
the maintenance and development of our core businesses, flat glass
and glass containers," said Federico Sada, Vitro's chief executive
"This is another in a series of planned steps that will help
us take Vitro into a new era," concluded Sada.
With annual sales of US$192 million in 2005, Vitrocrisa manufactures
and distributes glassware for the retail, food service, and industrial
segments of the glassware industry, and is the largest manufacturer
of glass tableware in Latin America.