Grant’s Conference: Mountain Lake Partners On Owens-Illinois, Koppers Holdings, Tidewater

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Mitch Cantor’s Mountain Lake Partners presentation from Grant’s Spring Conference 2015 on Owens-Illinois, Koppers Holdings and Tidewater titled, ‘Value Times Three’.

Owens-Illinois: Corporate History

1903 Michael Owens completes the automated bottle blowing machine and forms Owens Bottle Machine Company.

1929 Owens-Illinois was formed after the acquisition of Illinois Glass.

1958 Owens-Illinois sells Kaylo, its asbestos containing insulation unit, to Owens Corning. During the 10 years of ownership, aggregate sales are less than $40 million.

1987 KKR leveraged buyout for $3.7 billion

1988 With the acquisition of Brockway Glass, OI’ domestic market share is greater than 40%

1991 Initial public offering 2014 Asbestos related payments total $4.4 billion

2015 Current market capitalization is $3.8 billion

Glass Bottle Industry Dynamics

  • High fixed costs
  • Consolidated market
  • Barriers to entry
  • Steady demand
  • Limited growth
  • Generates lots of cash


  • In Europe, Owens-Illinois has 25% market share.
  • The top three firms have 67% market share.
  • Normal margins are 12.5%.

North America

  • In North America, Owens-Illinois has 40% market share.
  • The top three firms have 85% market share.
  • Normal margins are 15%.

South America

  • In Brazil, OI has 65% market share.
  • In Peru, Ecuador and Columbia, Owens-Illinois has 100% market share.
  • Normal margins are 20%.

Asia Pacific

  • In China, OI has about a 2% market share with a 0% margin.
  • In Australia and New Zealand, Owens-Illinois has 70% market share. Normal margins are 15%.

See full presentation below.

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