The New York investment firm that is to buy glassware manufacturer Anchor Hocking from Newell Rubbermaid is a specialist in reviving companies in difficulties.
Cerberus Capital Management will pay N…
The New York investment firm that is to buy glassware manufacturer Anchor Hocking from Newell Rubbermaid is a specialist in reviving companies in difficulties. Cerberus Capital Management will pay Newell Rubbermaid USD 310 million for Anchor Hocking and two of its other businesses, Burnes Picture Frame and Mirro Cookware. Cerberus plans to turn the three businesses into a new company, Global Home Products, to be based in Columbus, Ohio. A 2001 bid by Newell to sell Anchor Hocking to Toledo-based glass manufacturer Libbey Inc. was opposed by regulators. However, regulatory approval is seen as likely for the new deal because Cerberus is not in the glass business. A Cerberus spokesman said the firm plans no changes at Anchor Hocking“s Lancaster operations, which employ 1,000. “The company has traditionally looked for underperforming assets they can acquire and make more profitable because they believe in those assets,““ spokesman Richard Auletta said. Privately held Cerberus manages assets worth USD 12 billion. It recently acquired car-rental companies Alamo and National and Formica, a maker of countertops and laminates. It also owns Fila sportswear. Global Home Products will be led by George Hamilton, a 17-year Newell Rubbermaid veteran and former Anchor Hocking employee. Newell Rubbermaid Chief Executive Joseph Galli said in a statement that divesting non-strategic businesses is a priority for 2004. “While we still have more work to do, we are moving carefully and quickly to transform Newell Rubbermaid into an organization capable of consistent growth and profitability.““ Analyst Eric Bosshard, who follows Newell Rubbermaid for FTN Midwest Research in Cleveland, said it is unlikely that regulators would block the deal. Anchor Hocking said in 2003 that it would invest USD 30 million in the Lancaster plant over three years and re-open a glass-making furnace it had closed in 2002. The company laid off 175 permanent workers and 160 temporary employees when the furnace closed. Newell said Anchor Hocking, Burnes and Mirro generated a combined USD 695 million in sales in 2003, but it did not single out financial results for Anchor.