CORNING AND VITRO, S.A. COMPLETE FORMATION OF
NEW WORLDWIDE CONSUMER HOUSEWARES BUSINESS
CORNING, N.Y., Jan. 2 /PRNewswire/ -- Corning Incorporated (NYSE: GLW) and Vitro, Sociedad Anonima, Mexico's largest glass manufacturer, today announced they have completed their previously announced plan to create joint-venture companies combining their worldwide consumer housewares businesses.
The annual sales of the combined consumer housewares companies exceed $800 million. The two companies announced the proposed joint venture in August.
The total transaction is valued at close to $300 million. At today's closing, Corning received a cash payment in excess of $130 million and 49 percent of the shares of the new Vitro Corning company. Corning expects to report a modest gain on this transaction during its 1992 first quarter. Vitro, S.A. received 49 percent of the shares of the new Corning Vitro company.
Under terms of the agreements, Corning transferred its worldwide consumer assets and businesses to a newly formed U.S. subsidiary, known as Corning Vitro Corporation. Vitro, S.A. transferred its worldwide consumer assets and businesses to a newly formed Mexican subsidiary, known as Vitro Corning, S.A. de C.V. Corning owns 51 percent of the U.S. company. Vitro owns 51 percent of the Mexican company. Corning owns the remaining 49 percent of the Mexican company and Vitro, S.A. owns the remaining 49 percent of the U.S. company. Corning Vice Chairman Richard Dulude, who heads the company's worldwide Consumer Housewares Group, said, "We are now moving forward with our plans. We will begin immediately to expand the Vitro Crisa product line in the U.S. and to introduce Corning's wide range of brand name products throughout Mexico."
Julio Escamez, a member of Vitro, S.A.'s board of directors and head of Vitro, S.A.'s consumer business, said, "This new partnership offers both Vitro and Corning exciting opportunities to expand geographic markets, develop innovative products and achieve even higher levels of performance and quality."
Corning's best-known consumer cookware brands include Corning Ware, Pyrex, Revere Ware, Corelle and Visions. Vitro, S.A.'s consumer business is best known for its Crisa brand lines of glassware and stemware; Termocrisa and Fortecrisa dinnerware; and the prestigious Cien and Kristaluxus crystal ware. The markets and products of the two companies complement each other. The combined first-half 1992 product lines will be on display for the first time Jan. 12-15 at the national Housewares Show, Chicago.
Corning Incorporated and Vitro, S.A. are both highly regarded for their successful track records in creating and managing joint-venture companies. Over the last seven decades, Corning has established 48 equity ventures, among them Dow Corning Corporation, Samsung-Corning- Company Ltd., and a number of optical fiber overseas joint ventures.
Vitro, S.A. has also entered many joint-venture arrangements with leading companies including Ford Motor Company, Samsonite Corporation and Whirlpool Corporation.
Corning Incorporated is a worldwide organization with $2.9 billion in annual sales. Corning competes in four market sectors: consumer housewares, communications, laboratory services, and specialty materials.
Vitro, S.A. with annual consolidated sales of $2.8 billion, is one of the largest publicly traded companies in Mexico and is listed on the New York Stock Exchange. Its subsidiaries manufacture and market glass and plastic containers, thermoformed articles, flat glass for architectural and automotive uses, glassware for table and kitchen use, fiber glass insulation and reinforcements, chemical products, mineral resources, enamelware, household appliances, capital goods, and research and development of technology. Vitro, S.A. owns and operates Anchor Glass Container Corporation in the United States.
/CONTACT: K.C. Littleton, 607-974-8206, or Stephen L. Albertalli (investors), 607-974-8357, or Monique Dognin (Paris), 48-05-19-00, all of Corning; or U. Sander of Vitro, 011-52-83-35-76-30/
(GLW) CO: Corning Incorporated; Vitro, Sociedad Anonima ST: New York IN: HOU SU: FC-CK -- NY051 -- 6217 01/02/92 14:31 EST