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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 18, 1997
LIBBEY INC.
(Exact name of registrant as specified in its charter)
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Delaware 1-12084 34-1559357
(State of incorporation) (Commission File Number) (IRS Employer identification No.)
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300 Madison Avenue
Toledo, Ohio 43604
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (419) 325-2100
Page 1 of 5
Exhibit Index is on page 3
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ITEM 5. OTHER EVENTS
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On August 15, 1997 Libbey Inc. (the "Company") through subsidiaries
signed definitive agreements to:
- acquire a 49% interest in the equity of Vitro's glass
tableware business ("Vitrocrisa")
- acquire Vitro's WorldCrisa subsidiary based in Dallas,
Texas and
- establish reciprocal distribution agreements.
The cash purchase price will approximate $100 million and will be
financed through the Company's $380 million amended revolving credit
facility, that terminates May, 2002. The purchase price was determined
through arm's length negotiations.
The Vitrocrisa business manufactures, markets and sells glass tableware
and industrial glassware (e.g. coffee pots, blender jars, etc.). Its
manufacturing facilities are based in Monterrey, Mexico, and it sells
its products internationally. WorldCrisa is an importer of metal
flatware, ceramic dinnerware and other tabletop products that sells
primarily to the foodservice industry in the United States. It is the
Company's intention to continue to operate this business in a similar
mannner.
Reciprocal distribution agreements will be established, whereby Libbey
becomes the distributor of Vitrocrisa glass tableware products in the
United States and Canada, and Vitrocrisa will become the distributor of
Libbey glass tableware products in Mexico, Central and South America.
(c) EXHIBITS
Exhibit
No. Description
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99 Text of Press Release dated August 18, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LIBBEY INC.
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Registrant
Date: August 22, 1997 /s/ Kenneth G. Wilkes
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Kenneth G. Wilkes
Vice President, Chief Financial
Officer and Treasurer
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EXHIBIT INDEX
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Sequentially
Exhibit Numbered
No Description Page
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99 Text of Press Release dated August 18, 1997 4
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Exhibit 99
NEWS LIBBEY INC.
BULLETIN 300 MADISON AVE.
P.O. BOX 10060
TOLEDO, OH 43699
[THE FINANCIAL RELATIONS BOARD INC. LETTERHEAD]
FOR IMMEDIATE RELEASE
MONDAY, AUGUST 18, 1997
LIBBEY INC. ANNOUNCES SIGNING OF DEFINITIVE AGREEMENT
TO FORM JOINT VENTURE IN MEXICO AND FOR THE
ACQUISITION OF WORLDCRISA IN THE U.S.
TOLEDO, OHIO, AUGUST 18, 1997 -- Today, LIBBEY INC. (NYSE:LBY) announced that it
has signed definitive agreements with Vitro S.A., (NYSE:VTO) the largest glass
manufacturer in Mexico, to become a joint venture partner in Vitro's glass
tableware business and acquire Vitro's WorldCrisa subsidiary.
The agreements include:
- - Libbey becoming a 49 percent equity holder in Vitrocrisa, the largest
manufacturer of glass tableware in Mexico and currently a wholly owned
subsidiary of Vitro
- - Establishing reciprocal distribution agreements, whereby Libbey becomes the
distributor of Vitrocrisa glass tableware products in the United States and
Canada, and Vitrocrisa becomes the distributor of Libbey products in
Mexico, Central and South America.
- - Libbey purchasing the business known as WorldCrisa, a supplier of flatware,
dinnerware and other tabletop products to the foodservice industry in the
United States.
The joint venture and distribution agreements align the capabilities of these
two glass tableware manufacturers, and are intended to take advantage of each
company's specific manufacturing and distribution capabilities to benefit
customers and thereby expand Libbey's and Vitrocrisa's sales
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Libbey Inc.
Add -1-
opportunities domestically and internationally. Specifically, both companies
intend to work together in pursuing glass tableware expansion opportunities
internationally.
In addition, the acquisition of WorldCrisa, which will be renamed World
Tableware, expands Libbey's offering of tabletop products to the foodservice
industry to include stainless steel flatware and holloware and a wide selection
of imported dinnerware.
The cash purchase price for the above transactions is approximately $100
million. It is expected that the transactions will close in the near future.
Libbey Inc. is a leading producer of tabletop products for the foodservice
industry and a major supplier of glass tableware to retail, industrial and
premium users. In addition to its sales in the United States and Canada, Libbey
exports to more than 100 countries around the world. In 1996, its net sales
totaled $398 million. Based in Toledo, Ohio, the company operates glass
tableware manufacturing plants and full-line distribution centers in City of
Industry, California; Shreveport, Louisiana; Toledo, Ohio; and Wallaceburg,
Ontario, Canada. In addition, through its Syracuse China subsidiary, the company
designs, manufactures and distributes an extensive line of high-quality ceramic
dinnerware, principally for the foodservice industry in the United States.
Vitro, S.A. produces glass containers, flat glass, automotive glass, glassware,
plastic containers, aluminum cans and household goods for commercial, industrial
and consumer use. Vitro supplies numerous industries, including food and
beverage, construction and automotive. Based in Monterrey, Mexico and founded in
1909, Vitro has more than a dozen strategic alliances with large corporations
around the world. It has its own facilities in seven countries, including Mexico
and the United States, and exports its products to more than 60 countries
worldwide.
FOR FURTHER INFORMATION REGARDING LIBBEY INC., FREE OF CHARGE VIA FAX,
DIAL 1-800-PRO-INFO AND USE TICKER SYMBOL "LBY."
