OI Makes 2nd Latin American Acquisition This Year

Owens-Illinois, Inc. (NYSE: OI) has announced a $603M acquisition of Companhia Industrial de Vidros, a glass producer in Brazil, an all cash deal that closed today, Deutsche Bank reports.

According to Deutsche Bank, OI is focusing on its strategy to grow in Latin America and Asia, with this deal being OI's second in Latin America this year, and more are expected over the next 6-12 months.

EPS are expected to remain neutral for 2010, says OI, and accretive in 2011, adding upwards of $0.20/share y/y 2011, and given the low cost of incremental debt financing, Deutsche Bank believes this is not a hard scenario to envision.

Deutsche Bank maintains its Buy rating and $35 price target.

Owens-Illinois, Inc. closed yesterday at $25.06.