Completion of the transaction is expected during the second or third quarter of 2014 and is subject to customary closing conditions and regulatory approvals.
KPS is the manager of KPS Special Situations Funds, a family of private equity limited partnerships with over $6.0bn of assets controlling equity investments in companies across a range of manufacturing industries experiencing a period of transition or challenged by the need to effect immediate and significant change.
Financial terms of the transaction were not disclosed but financing for the transaction will be provided by a syndicate of banks and institutional investors with UBS Investment Bank and RBC Capital Markets acting as Lead Arrangers.
Jay Bernstein, partner, KPS, said the investment was the first step in creating a thriving enterprise in the glass packaging industry. It wants to aggressively grow the Anchor Glass platform both organically and through acquisitions on a global scale.
Ardagh bought Anchor Glass Container Corporation from Wayzata Investment Partners for $880m in August 2012.
It has agreed to sell six of its nine glass container manufacturing plants in the US to settle Federal Trade Commission (FTC) charges that its $1.7bn proposed acquisition of Saint-Gobain Containers could harm competitors who make glass containers to package beer and spirits.
Rapidly expanding market
The FTC’s settlement order requires Ardagh to sell six of the manufacturing plants and related assets it acquired through its 2012 acquisition of Anchor Glass Container Corporation, along with Anchor’s former corporate headquarters in Tampa, Florida.
Anchor is the third largest glass container manufacturer in the US, producing 5.6bn containers a year for the beer, liquor, food, beverage and ready-to-drink end markets.
The company is headquartered in Tampa, Florida and employs approximately 2,000 people, with six manufacturing facilities in Florida, Georgia, Indiana, Minnesota, New York and Oklahoma, an engineering and spare parts facility in Illinois and a mold manufacturing plant in Ohio.
“The entire Anchor Glass team enthusiastically welcomes the opportunity to become an independent company under KPS’ ownership,” said Jim Fredlake, CEO, Anchor Glass.
Bernstein added the craft beer and premium liquor segments of the glass packaging market was rapidly expanding and it looked forward to the next phase of Anchor Glass’ growth.