US glass tableware manufacturer Libbey, Inc. announced that it has abandoned its proposed acquisition of the Anchor Hocking businesses of Newell Rubbermaid, Inc. In light of the challenge to the acqui…
US glass tableware manufacturer Libbey, Inc. announced that it has abandoned its proposed acquisition of the Anchor Hocking businesses of Newell Rubbermaid, Inc. In light of the challenge to the acquisition by the US Federal Trade Commission (FTC) and after careful consideration of various alternatives, the company concluded that this decision was in the best interest of the parties. Consistent with acquisition-related costs identified in Libbey“s Form 10-Q filed on 15 May 2002 for the first quarter of 2002, these costs total approximately US$ 8 to US$ 9 million after – tax, or US$ 0.51 to US$ 0.58 per diluted share, and will be written-off in the second quarter of 2002. The vast majority of related cash payments were made prior to 31 March 2002. John F. Meier, Libbey“s chairman of the board and chief executive officer, stated, “Libbey regrets that our purchase of Anchor Hocking will not go forward, as our varied constituencies would have truly benefited. We diligently continued to search for alternative solutions that would accommodate all parties. However, the extended timing associated with the possible alternatives and the lack of certainty in achieving FTC approval forces us to conclude that we must now abandon the transaction.” Libbey restructured its Anchor Hocking transaction in January of this year, agreeing not to acquire the Anchor Hocking foodservice business that had caused issues with the FTC. Commenting on the balance of the year, Meier also stated, “We are encouraged by the performance of our Libbey business to date, with growth in our core markets exceeding our expectations.”