Vitro acquires automotive business from Pittsburgh Glass Works
Mexican glassmaker Vitro SAB announced it agreed to buy the automotive-glass manufacturing operations of Pittsburgh Glass Works, a subsidiary from LKQ Corp. for US$ 310 million, in order to expand its presence in the U.S. market.
Vitro will acquire PGW’s original-equipment-manufacturing (OEM) 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, according to a press release.
Vitro said it would fund the transaction with US$ 80 million in cash and a US$ 230 million loan from BBVA Bancomer, the Mexican unit of Spain’s Banco Bilbao Vizcaya Argentaria, “which was simultaneously signed with this agreement,” the company said.
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.
“With this investment, we will continue to strengthen our automotive glass division, a key business for Vitro,” the company said. “PGW’s original equipment business will enable us to serve more customers and increase our geographic coverage.”
LKQ said the sale allows it to focus on the aftermarket glass distribution, which has synergies with its core North American replacement-parts distribution business. The deal includes a multiyear supply agreement under which LKQ will buy agreed amounts of glass for the aftermarket business from Vitro at specified prices.
The deal is expected to close in the first quarter of 2017.