Owens-Illinois Negotiating to Acquire BSN Glasspack

Owens-Illinois, Inc. has entered into exclusive negotiations to acquire BSN Glasspack, S.A., the second largest glass container manufacturer in Europe, from Glasspack Participations.

Total cost of the acquisition is estimated at around 1.46 billion, including the assumption of debt. The parties expect to reach an agreement shortly. BSN will initiate consultations immediately with the appropriate employee works councils in accordance with applicable labor laws.

The acquisition would be subject to regulatory approval, with the closing expected in the second quarter of this year.

BSN owns and operates 19 plants in Western Europe. Its products principally serve the wine and spirits, other beverages including beer, and specialty food industries.

Thomas L. Young, Owens-Illinois interim co-chief executive officer and chief financial officer, said, "By combining BSN with our existing European operations, we would create Europe's largest glass container company, augmenting our existing number one positions in North America, South America and Australia.

This acquisition would be a meaningful step in our strategy to focus on the competitive strengths of our global glass container businesses."