Owens-Illinois Soars 9 Percent on Vitro Acquisition

Owens-Illinois (OI) ended Wednesday's trading day up 9.2 percent, making it TheStreet's Move of the Day.
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Owens-Illinois (OI) ended Wednesday's trading day up 9.2 percent, making it TheStreet's Move of the Day. The company announced it will acquire Vitro's food and beverage business in a deal valued at roughly $2.15 billion in cash. While regulators must approve the deal, it's expected to close in one year. Al Stroucken, chairman and CEO of Owens-Illinois said: 'In the third year after close, this compelling transaction is expected to add approximately $0.50 to our earnings per share and at least $100 million in free cash flow, positioning us to drive even greater value for shareholders.' Some $30 million in synergies are expected by 2018. Deutsche Bank (DB) will be funding the deal, Owens Illinois said.