US-based manufacturer of glass containers, Owens-Illinois (O-I) will acquire French bottle maker VDL Company for $15m after agreeing a new strategic relationship with bottled water company, Nestlé Waters.

The single-furnace glass container plant in Vergeze, France is located near the Nestlé Waters’ Perrier bottling facility and has a supply relationship with Nestlé Waters. Under the terms of the acquisition agreement, effective 1st August 2011, O-I will become the leading supplier of glass bottles for the Perrier brand, as well as Nestlé Waters’ other water brands worldwide.

“As a result of this deeper strategic relationship with Nestlé Waters, O-I has the opportunity to support some of the preeminent brands in the water segment and reinforce glass’ position in this important category,” said Jose Lorente, President of O-I Europe.

O-I announced the intent to acquire the Vergeze plant in November 2010, pending the completion of a restructuring plan to bring the facility’s costs in line with those of other O-I Europe plants.
The acquisition is expected to be earnings accretive in 2012.