Owens-Illinois (O-I) plans to acquire the Nueva Fanal container glass manufacturing facility from Grupo Modelo.

The Nueva Fanal facility is located near Mexico City, Mexico and produces 300,000 tonnes per year of glass container from four furnaces.

It makes bottles for Grupo Modelo brands, which include Corona, Modelo Especial and Pacifico.

Grupo Modelo is a wholly owned affiliate of Anheuser-Busch InBev (ABI).

The acquisition is a cash transaction valued at approximately $188 million and is expected to close this year.

O-I expects the business to contribute approximately $140 million of revenue and $40 million EBITDA¹ on an annual basis. Incremental synergies are anticipated.

O-I will also enter into a long-term glass supply agreement to continue to supply Grupo Modelo.

Andres Lopez, Chief Executive Officer, O-I, said: "This investment is in addition to our recently announced nearly 50% acquisition of Empresas Comegua as well as our plans to expand our Gironcourt, France, glass plant.”