O-I Glass is to sell its Australia and New Zealand (ANZ) business unit to Visy Industries for AUD $947 million (US$658.9 million).

O-I and Visy have agreed that the sale of the O-I ANZ business unit will be completed in two separate transactions.

O-I has entered into a sale-leaseback agreement with Charter Hall property management company for properties valued at AUD $214 million as well as an agreement to sell the O-I ANZ business to Visy for AUD $733 million.

Both transactions have already received the proper regulatory approvals and closing is expected by August 31, 2020.

O-I is the world’s largest container glass manufacturer and estimates final net proceeds will be USD$620 million which will be used to reduce debt.

O-I CEO Andres Lopez said: “The sale of ANZ follows an in-depth strategic review of our global business portfolio and operating structure which is now substantially complete following this transaction.

"We received a full and fair price for ANZ, and this sale represents a significant milestone in our business transformation as we optimise our structure and prioritise debt reduction.”

He added: “Following a robust sales process, we believe Visy is the best fit for our ANZ business, our customers and our employees.

"Visy is a well-established leader in providing high quality, innovative and closed loop packaging solutions that has operated in Australia for more than 70 years.”

O-I ANZ is the largest manufacturer of glass bottles and containers in Australia and New Zealand.

It has five manufacturing facilities located in Adelaide, Brisbane, Melbourne, Sydney and Auckland and a recycled glass processing plant in Brisbane.

The business generated sales of approximately AUD $754 million and EBITDA of approximately AUD $124 million in 2019 and is headquartered in Melbourne.