KPS Capital Partners, LP (“KPS”) announced today that it signed a definitive agreement, through an affiliate, to sell its portfolio company Anchor Glass Container Corporation (“Anchor Glass” or the “Company”) to funds advised by CVC Capital Partners (“CVC”), one of the world’s leading private equity and investment advisory firms, and BA Glass B.V. (“BA Glass”), a leading manufacturer of glass bottles in Europe, for over $1 billion.
Anchor Glass is a leading North American manufacturer of premium glass packaging products with long-standing customer relationships and a widely recognized reputation for product quality, customer service and innovation.
Jay Bernstein, a Partner of KPS, stated, “The success of our investment in Anchor Glass demonstrates KPS’ ability to see value where others do not, to buy right and to make businesses better. In 2014, we recognized the tremendous investment opportunity Anchor Glass presented and have successfully executed our strategy to substantially increase the Company’s revenue and profitability. KPS worked with management to improve every aspect of Anchor Glass’ business, resulting in profitability increasing by more than 50% in just over two years.
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. The investment return generated for our investors in the Anchor Glass transaction is further validation of the KPS investment strategy, which we have successfully executed across decades, economic cycles and many industries. We are very proud to partner with Chief Executive Officer Jim Fredlake, the Company’s senior management team and all the dedicated employees of Anchor Glass. We also thank the Glass, Molders, Pottery, Plastics & Allied Workers International Union (GMP) and the United Steelworkers (USW) for their critical contributions toward the success of Anchor Glass. We are confident that Anchor Glass will continue to grow and prosper in the future with the help of CVC Capital Partners and BA Glass,” Mr. Bernstein concluded.
Jim Fredlake added, “KPS was the only investor to recognize the potential value of our business two years ago. 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. 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.”
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.
About Anchor Glass Container Corporation
Anchor Glass is a leading North American manufacturer of premium glass packaging products. Anchor Glass has long-standing relationships with blue chip companies across the beer, liquor, food, beverage, ready-to-drink and consumer end-markets. The Company employs approximately 2,000 people and operates six manufacturing facilities located in Florida, Georgia, Indiana, Minnesota, New York and Oklahoma, an engineering and spare parts facility in Illinois and a mold manufacturing facility in Ohio. For more information, please visit www.anchorglass.com.
About KPS Capital Partners
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.8 billion of assets under management (as of June 30, 2024). For over three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies generate aggregate annual revenues of approximately $19.3 billion, operate 219 manufacturing facilities in 26 countries, and have approximately 47,000 employees, directly and through joint ventures worldwide (as of June 30, 2024). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
