Vitro acquires PGW’s original equipment automotive glass business

Vitro completed its previously announced acquisition of Pittsburgh Glass Works’ (PGW) automotive original equipment manufacturer (OEM) glass business from LKQ Corporation.

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www.vitro.com

Date: 1 March 2017

Transaction positions the company as the leading producer in NA

Vitro, S.A.B. de C.V., a leading North American glass producer headquartered in Monterrey, Mexico acquired Pittsburgh Glass Works’ (PGW) automotive original equipment manufacturer (OEM) glass business from LKQ Corporation.

The acquisition completes the agreement announced last December for US$310 million, free of cash and debt. The final acquisition price is subject to potential post-closing purchase price adjustments, which are typical for these types of transactions.

PGW operates two float glass lines at a plant in Meadville, Pennsylvania and fabrication facilities in Berea, Kentucky; Creighton, Pennsylvania; Crestline, Ohio; Elkin, North Carolina; Evansville, Indiana; Evart, Michigan; and Tipton, Pennsylvania.

Headquartered in Pittsburgh, PGW operates seven manufacturing plants, two satellite facilities and two float glass furnaces in the U.S. It also has one manufacturing plant in Poland and owns an equity participation in two joint ventures, one each in Mexico and China.

The acquisition, combined with the purchase of PPG’s former flat glass business completed last October, expands Vitro’s float glass manufacturing and fabrication facilities. The transaction solidifies the company’s position as the leading glass manufacturer in North America.

A technology leader in automotive glass, PGW manufactures well-known brands such as Weathermaster® and Sungate® windshields, Solar Color Series™ tinted automotive glasses and Safe and Sound® laminated glass.

Adrian Sada Cueva, Chief Executive Officer of Vitro, said the addition of PGW's original equipment business will enable the company to serve a greater number of customers in the automotive glass business and increase its global coverage.

PGW is a leader in the design, production and distribution of automotive glass to high-volume automotive OEM applications. Employing more than 4,500 people globally, the company provides engineering development and application of sophisticated automotive glass technologies for customers around the world.

“The experience and state-of-the-art technology PGW brings to our business will enhance our technical, research and development capabilities,” he explained. “It will further strengthen our company and create a business staffed by talented employees and strategically positioned for growth.”

Joe Stas, Chief Executive Officer of PGW, said the transaction represents the beginning of an exciting new era for PGW associates and stakeholders.

PGW will unite its research and development capabilities with those of Vitro Architectural Glass, PPG’s former flat glass business unit. The combined staff of engineers and scientists will work primarily at the Vitro Glass Technology Center in Harmar Township, Pennsylvania, near Pittsburgh.

“Vitro has a sterling reputation throughout the industry as a highly competent and capable glass manufacturer, based on more than a century of glass-making experience across the automotive, architectural and glass container industries. By harnessing the strength of a newly expanded workforce and their technical capabilities, Vitro is committed to creating a next-generation auto glass company focused on innovation and world-class customer service.”

The glass-walled Vitro Glass Technology Center in Harmar Township, Pennsylvania is one of the world’s most sophisticated hubs for glass technology, research and development. The facility was acquired by Vitro on Oct. 1, 2016, when it purchased the former PPG’s former flat glass business. Since opening in 1958, more than 500 patents have been issued to employees of the center, with more than 200 of them still active.

The combined automotive glass business will unite its research and development capabilities with those of Vitro Architectural Glass, PPG’s former flat glass business unit. The combined staff of engineers and scientists will work primarily at the Vitro Glass Technology Center in Harmar Township, Pennsylvania, near Pittsburgh.

Stas added, “The strategic acquisition is very complementary and will enable us to more effectively serve global automotive customers with enhanced world-class products and services.”