Mexico’s Vitro to Buy Glass Manufacturing Operations from LKQ
Mexican glassmaker Vitro SAB said it agreed to buy the automotive-glass manufacturing operations of Pittsburgh Glass Works from LKQ Corp. for US$310 million, further expanding Vitro’s presence in the U.S. market. Vitro will acquire PGW’s original-equipment-manufacturing business, which includes seven manufacturing plants, two satellite facilities and two glass furnaces in the U.S.; a glassmaking plant in Poland; and stakes in two joint-ventures in the U.S. and China. Vitro said it would fund the transaction with US$80 million in cash and a US$230 million loan from BBVA Bancomer. The acquisition is Vitro’s second this year in the U.S. The company previously bought PPG Industries Inc.’s flat-glass operations for about US$755 million. Vitro shares rose 4.4% on the Mexican stock exchange early Monday and are up 19% in the past year. LKQ shares trading on Nasdaq were recently down 1.8%.