New York-based KPS Capital Partners LP said it agreed to sell its portfolio company Anchor Glass Container Corp. to global private equity firm CVC Capital Partners and BA Glass BV, a manufacturer of glass bottles in Europe, for over $1 billion.
Anchor Glass is a leading North American manufacturer of premium glass packaging products. The company employs 2,000 people and operates six manufacturing facilities in Florida, Georgia, Indiana, Minnesota, New York and Oklahoma, an engineering and spare parts facility in Illinois, and a mold manufacturing facility in Ohio.
“The sale of Anchor Glass to funds advised by CVC Capital Partners and BA Glass is a great outcome for our investors and Anchor Glass, its management, employees, customers and suppliers,” said Jay Bernstein, a partner of KPS.
“Working in partnership with KPS, we invested significantly in our operations and people, focusing on manufacturing excellence and providing best-in-class product quality, product innovation and the highest levels of service and support to our customers,” said Anchor Glass CEO Jim Fredlake. “We are very grateful to KPS for its leadership and its commitment to improving and growing our business and positioning it to achieve an even higher level of success under our new ownership.”
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $5.5 billion of assets under management.
Completion of the transaction, which is expected during the fourth quarter, is subject to customary closing conditions.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel and Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC served as financial advisors to KPS and Anchor Glass with respect to the transaction.
Headquartered in Luxembourg, CVC Capital Partners is one of the world’s leading private equity firms. Founded originally in 1981 as the European arm of Citicorp Venture Capital, the CVC Group today employs some 300 people throughout Europe, Asia and the US.
The firm was spun out from Citicorp in 1993, as an independent private equity firm. The CVC team’s local knowledge and extensive contacts underpin a proven track record of over 30 years of investment success. CVC manages capital on behalf of over 300 institutional, governmental and private investors worldwide, having secured commitments of more than US$71 billion in private equity, credit and growth funds.
BA Group, founded in 1912 and headquartered in Portugal, currently comprises eight factories with 2.400 employees in Portugal, Spain, Poland, and Germany. The company has a daily production of more than 14 million units, including bottles and jars, for customers operating in the food & beverage industries.