Libbey and Newell Rubbermaid have hammered out another agreement on the purchase of Anchor Hocking that they hope will be more palatable to the Federal Trade Commission.
In mid-January the two compan…
Libbey and Newell Rubbermaid have hammered out another agreement on the purchase of Anchor Hocking that they hope will be more palatable to the Federal Trade Commission. In mid-January the two companies announced a revised deal in which glassware manufacturer Libbeywould acquire Anchor“s consumer and speciality glassware business from Newell for about US$ 277.5 million. The agreement would not include Anchor“s food-service glassware business, which generates approximately US$ 17 million in worldwide net sales and was the sticking point of the previous purchase offer. Earlier in January, The FTC filed suit to block the transaction, saying the deal would create a monopoly in the food-service glassware arena. “While delays in acquiring the Anchor Hocking glass business are unfortunate, we are pleased to have entered into the revised purchase agreement and look forward to successfully completing this transaction in the near term,” said John Meier, Libbey“s chairman of the board and chief executive officer, in a statement. Libbey said the deal is consistent with its external growth strategy and would add to its earnings per share in the first year.