Vitro would sell the food and beverage packaging business

The company could sell its food and beverage packaging business, including operations in Bolivia and product distribution in the United States.

Vitro, one of the largest glass manufacturers in the worldis exploring the sale of its food and beverage packaging business, which represents 48 percent of its total sales in 2013, which totaled 21,538 million pesos, and 49 percent of its operating income (EBITDA), which amounted to 2,680 million pesos.

Sources close to the company confirmed that Vitro received an offer from a buyer whose name they are not naming because the negotiations are private. However, they said the Mexican company’s Board of Directors is considering the proposal in detail.

The potential transaction would include operations in Bolivia (Vilux) and distribution of the company’s products in the United States. On the other hand, it does not consider the chemical business, cosmetics, machinery and equipment, as well as Vitro’s participation in the Central American joint venture Comegu.

If the operation goes through, Vitro would retain the exempt assets as well as its automotive glass and float glass businesses for the construction market.

In April next year Vitro has a maturity of $235 million. “The company is evaluating various alternatives for refinancing its $235 million bond,” it said in its second-quarter 2014 report.

The company has total net debt of $1.257 million, of which $304 million is short-term, while it has only $218 million in cash.

Consulted analysts, who spoke on condition of anonymity, commented that the asset sale would be related to debt involving the fintech group and some of its subsidiaries, with which it reached an agreement last May to end a series of lawsuits in Mexico. and the United States.

Source: El Financiero

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