Owens-Illinois Inc., the world's largest glass container manufacturer, is buying VDL Co., which has a single-furnace glass container plant in Vergeze, France, effective Aug. 1, 2011. The acquisition is the result of a new strategic relationship with Nestle Waters, the world's leading bottled water company. The Vergeze plant is located near the Nestle Waters' Perrier bottling facility and has a long-standing supply relationship with Nestle Waters.
Under the terms of the acquisition agreement, O-I will become the leading supplier of glass bottles for the Perrier brand, as well as Nestle Waters' other water brands worldwide.
O-I has long supplied Nestle Waters' S. Pellegrino line, and the brand's CEO is currently featured in O-I's Glass Is Life global advertising campaign.
"As a result of this deeper strategic relationship with Nestle Waters, O-I has the opportunity to support some of the preeminent brands in the water segment and reinforce glass' position in this important category," said Jose Lorente, president of O-I Europe.
O-I announced the intent to acquire the Vergeze plant in November 2010, pending the completion of a restructuring plan to bring the facility's costs in line with those of other O-I Europe plants.
O-I will pay approximately $15 million related to the acquisition of the Vergeze plant, which employs 132 people. The acquisition is expected to be earnings accretive in 2012.
Source: Owens-Illinois Inc.