EXHIBIT 99
[LIBBEY LOGO] LIBBEY INC.
300 MADISON AVE
P.O. BOX 10060
TOLEDO, OH 43699
N E W S R E L E A S E
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
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KENNETH WILKES KENNETH BOERGER SUZY LYNDE
VP/CFO VP/TREASURER ANALYST INQUIRIES
(419) 325-2490 (419) 325-2279 (312) 640-6772
FOR IMMEDIATE RELEASE
MONDAY, JANUARY 6, 2003
LIBBEY INC. ACQUIRES ROYAL LEERDAM, A MAJOR SUPPLIER OF GLASS STEMWARE WORLDWIDE
Acquisition expected to add $52 to $55 million
annually to Libbey's sales and add
$0.12 to $0.15 to earnings per diluted
share in the first year
TOLEDO, OHIO, JANUARY 6, 2003 -- LIBBEY INC. (NYSE: LBY) announced today that it
has consummated the acquisition of the stock of B.V. Koninklijke Nederlandsche
Glasfabriek Leerdam (Royal Leerdam) from BSN Glasspack. The deal was a cash
transaction and is valued at E 42.3 million.
Royal Leerdam manufactures and markets high quality glass stemware, including
popular wine glasses. It operates a manufacturing and distribution facility in
Leerdam, The Netherlands, and employs approximately 450 associates.
The acquisition is consistent with Libbey's external growth strategy to be a
supplier of high-quality, machine-made glass tableware products to key markets
worldwide. The acquisition is expected to:
[ ] Increase Libbey's penetration in the important global market
for glass stemware.
[ ] Expand the selection of glass tableware products offered by
Libbey to customers world-wide.
[ ] Provide Libbey and its customers with another source for
high-quality, distinctive and competitively priced stemware.
[ ] Utilize the combined sales, marketing, distribution and
manufacturing of Libbey and Royal Leerdam to increase sales
and achieve operating efficiencies.
[ ] Be accretive to Libbey's earnings per share in the first
twelve months of operation by approximately $0.12 to $0.15 per
diluted share.
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Libbey, Inc.
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In addition to contributing to sales, operating profits and bottom-line
earnings, Royal Leerdam will add to the sizable cash flow generated by Libbey.
As a result it is expected to contribute to Libbey's track record of strong cash
return on invested capital, regular debt reduction and increasing financial
strength over time.
John F. Meier, Libbey's chairman of the board and chief executive officer,
stated, "We are very excited to be teaming up with Royal Leerdam. This
acquisition will utilize the complementary skills and resources of the people of
Libbey and Royal Leerdam to position Libbey as an even more important supplier
to its customers and add value for its shareholders.
Libbey Inc. will be holding an Investor Relations meeting in Chicago, IL on
January 13, 2003, in conjunction with the International Housewares Show. At that
time the company will be reviewing its recently announced acquisition of Traex,
a supplier of plastic products to the foodservice industry, and the Royal
Leerdam acquisition. For details, call Sue Myers at Libbey Inc. at 419-325-2490
or email at myerssm@libbey.com.
The above information includes "forward-looking" statements as defined in the
Private Securities Litigation Reform Act of 1995. Such statements only reflect
the company's best assessment at this time, and are indicated by words or
phrases such as "goal," "expects," " believes," "will," "estimates,"
"anticipates," or similar phrases.
Investors are cautioned that forward-looking statements involve risks and
uncertainty, that actual results may differ materially from such statements, and
that investors should not place undue reliance on such statements.
Important factors potentially affecting performance include: increased
competition from foreign suppliers endeavoring to sell glass tableware in the
United States and Mexico, including the impact of lower duties for imported
products; major slowdowns in the retail, travel or entertainment industries in
the United States, Canada, Mexico and Western Europe, caused by terrorist
attacks or otherwise; significant increases in per-unit costs for natural gas,
electricity, corrugated packaging, and other purchased materials; higher
interest rates that increase the company's borrowing costs; protracted work
stoppages related to collective bargaining agreements; increases in expenses
associated with higher medical costs, reduced pension income associated with
lower returns on pension investments and increased pension obligations;
devaluations and other major currency fluctuations relative to the U.S. dollar
that could reduce the cost-competitiveness of the company's products compared to
foreign competition; the effect of high inflation in Mexico and exchange rate
changes to the value of the Mexican peso and the earnings and cash flow of the
company's joint venture in Mexico, Vitrocrisa, expressed under U.S. GAAP; the
inability to achieve savings and profit improvements at targeted levels in the
company's operations or within the intended time periods; whether the company
completes any significant acquisition, and whether such acquisitions can operate
profitably.
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Libbey, Inc.
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Libbey, Inc.
- - is a leading producer of glass tableware in North America;
- - is a leading producer of tabletop products for the foodservice
industry;
- - exports to more than 75 countries; and,
- - provides technical assistance to glass tableware manufacturers around
the world.
Based in Toledo, Ohio, the company operates glass tableware manufacturing plants
in the United States in California, Louisiana, and Ohio and in The Netherlands.
In addition, Libbey is a joint venture partner in the largest glass tableware
company in Mexico. Its Syracuse China subsidiary designs, manufactures and
distributes an extensive line of high-quality ceramic dinnerware, principally
for foodservice establishments in the United States. Its World Tableware
subsidiary imports and sells a full-line of metal flatware and holloware and an
assortment of ceramic dinnerware and other tabletop items principally for
foodservice establishments in the United States. Its Traex subsidiary, located
in Wisconsin, designs, manufactures and distributes an extensive line of plastic
items for the foodservice industry, including: ware washing racks, trays,
dispensers, bar supply, tabletop, food preparation items and brushes. In 2001,
Libbey Inc.'s net sales totaled $419.6 million.
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