Vidrala, the independent Spanish glass container maker, has agreed to buy a controlling 71.45% stake in the Portuguese glass container firm Ricardo Gallo for 13.3M Euros, plus 500,000 Vidrala shares. The aim is to maintain the companies separate identities, with Gallo's current CE and management team remaining in place. The merger furthers Vidrala's commitment to growth and also satisfies Gallo's need for a strategic consolidation to give it financial and economic critical mass. The firms have similar modern manufacturing technologies and complementary geographic markets and customer fits, and have good reputations for service and quality. Gallo can produce up to 160,000/tpy at its factory in Marinha Grande and has an annual turnover of 48M Euros. Vidrala reported pre-tax profits of 19.48M Euros in 2002 on turnover of 125M Euros.
