NEW YORK--(BUSINESS WIRE)--Monomoy Capital Partners, L.P., a private equity firm that makes turnaround investments in middle market companies, announced that The United States Bankruptcy Court for the District of Delaware today approved the acquisition of The Anchor Hocking Company by Monomoy in a sale of assets under Section 363 of the Bankruptcy Code. Monomoy purchased Anchor for approximately $75 million in cash plus the assumption of $20 million in ordinary course liabilities.
With approximately $200 million in sales, Anchor Hocking is the leading North American designer, manufacturer and distributor of glassware to the retail, foodservice and specialty markets. The Company’s product line includes glass beverageware, bakeware, storage containers and barware; glass candle containers; glass used for lighting and other industrial purposes; and specialty glass items. Anchor’s customers include mass market retailers such as Wal-Mart, K-Mart and Target, specialty retailers and distributors to the lodging and food service industries.
The Company operates manufacturing facilities in Lancaster, Ohio and Monaca, Pennsylvania, as well as a worldwide distribution center in Lancaster, Ohio. For the past three years, Anchor has operated as a division of Global Home Products, Inc., a $600 million consumer products company that filed for bankruptcy in April of 2006. The Monomoy acquisition will re-establish Anchor as a standalone, focused glassware provider.
“Anchor remains the premiere glassware franchise in every market it serves,” said Daniel Collin, a Monomoy principal. “The Company has a management team, employee group, and customer list second to none in the industry. Monomoy will provide Anchor with the strategic and management resources necessary to improve operations, explore new sales channels and maintain the highest level of quality and service for its customers.”
Mark Eichhorn will remain the Chief Executive Officer of Anchor Hocking. Mr. Eichhorn joined Global Home Products as president and chief operating officer of the Anchor division in 2004 and served as president of Rubbermaid Home Products and President of Anchor when both companies were divisions of Newell-Rubbermaid Corp.
“This is a great day for Anchor and every one of its employees, suppliers and customers,” said Mr. Eichhorn. “Monomoy has been a terrific partner throughout a difficult transaction process, and they will provide us with financial strength and operational expertise to improve every aspect of our business.”
Anchor’s hourly employees are represented by the United Steelworkers Union, and the Monomoy acquisition is contingent on ratification of new labor agreements between Monomoy and the Steelworkers.
“We thank the local and national leadership of the Steelworkers for working with Monomoy to position Anchor for new ownership and long-term success,” said Stephen Presser, a Monomoy principal. “We could not – and would not – take Anchor out of bankruptcy without the active participation and partnership of the Steelworkers.”
Monomoy concluded the Anchor transaction, including full due diligence and extensive negotiations with the sellers, the Steelworkers, lenders, suppliers and customers, in approximately five weeks. Richard Porter, Joshua Kogan and David Agay of Kirkland & Ellis represented Monomoy in the transaction; Conway, MacKenzie & Dunleavy provided financial and accounting diligence. National City Business Credit will provide senior financing for the acquisition, which is expected to close in early April.
About Monomoy Capital Partners, L.P.
Monomoy Capital Partners, L.P. is a private equity firm based in New York that makes controlling investments in smaller companies that require operational or financial restructuring. The firm, which closed its oversubscribed debut fund at $280 million in January 2007, targets fundamentally sound businesses with revenues of less than $200 million that can be acquired through complex transactions, including bankruptcy, out-of-court restructuring, corporate divestiture and family succession. Anchor is Monomoy’s ninth acquisition in 18 months and its eighth active portfolio company. For additional information on Monomoy and its portfolio, visit www.mcpfunds.com.