TO THE SPANISH SECURITIES AND EXCHANGE COMMISSION DISCLOSURE OF A RELEVANT EVENT VIDRALA EXECUTES LETTER OF INTENT FOR THE ACQUISITION OF SANTOS BAROSA

Pursuant to article 17 of the Regulation (UE) no. 596/2014 on Market Abuse and to article 228 of the Royal Legislative-Decree 4/2015, dated 23 October, approving the consolidated version of the Securities Market Act, VIDRALA, S.A. ("Vidrala" or the "Company") informs that it has executed a letter of intent for the acquisition of a controlling stake in the Portuguese company Santos Barosa Vidros, S.A. ("Santos Barosa"). The eventual acquisition remains subject to the conduction of the relevant legal and financial reviews, as well as to the execution of the corresponding transaction agreements. In addition, the closing of the transaction will be conditioned upon the approval by the relevant antitrust authorities.

Santos Barosa manufactures and sells glass containers and owns a major production facility located in Marinha Grande, Portugal. The company produces around 400,000 glass tons per year, with an estimated turnover for 2017 ranging between 130 and 135 million euros, and an estimated operating result, EBITDA, ranging between 32 and 34 million euros.

The agreed transaction price amounts to an enterprise value equivalent to 250 million euros, approximately. Said figure could vary moderately depending on the indebtedness effectively assumed at the transaction closing.

The execution of the definitive documents and the closing of the transaction are expected to take place during the third quarter of 2017.

Vidrala's board of directors and the management team have been admiring for years the quality of the business developed by Santos Barosa, grounded in modern manufacturing facilities and solid commercial relationships with their clients. Vidrala has shown capacity for the integration of companies within the group, fostering their respective positionings, promoting customer satisfaction and contributing to their local futures through its proved expertise in the glass packaging business and its strongly industrial long-term vision. Adding this complementary business to our network will result in compelling benefits to customers, employees and shareholders.

Llodio, June 21, 2017

José Ramón Berecíbar Mutiozábal Secretary of the Board

Vidrala SA published this content on 21 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 June 2017 10:30:10 UTC.