Monomoy Buys Glass Companies

Monomoy Capital Partners has acquired both Indiana Glass Co. and E.O. Brody Co. from the Lancaster Colony Corp. (Nasdaq: LANC). No financial terms were disclosed. The two companies will be combined with The Anchor Hocking Co., a $220 million glassware manufacturer that Monomoy acquired out of Chapter 11 in April.

PRESS RELEASE

Monomoy Capital Partners, L.P., a New York private equity fund that makes controlling investments in middle market companies that require operational or financial restructuring, announced today that it has acquired Indiana Glass Company and E.O. Brody Company from the Lancaster Colony Corporation (NASDAQ: LANC).  Terms of the transaction were not disclosed.

Indiana Glass manufactures tabletop and decorative glassware containers for the retail, private label, candle and floral markets.  E.O. Brody markets and distributes vases made by Indiana Glass to wholesale florists, large floral buying groups and flower shops.  Indiana Glass' customers include large retailers such as Wal-Mart, specialty retailers, and candle makers.  E.O. Brody supplies the nationwide floral industry, including FTD, 1-800-FLOWERS, and more than 1,200 independent retail florists.  The companies employ approximately 450 people at facilities located in Sapulpa, Okla., Tulsa, Okla., Dunkirk, Ind. and Cincinnati, Ohio.

Monomoy will merge Indiana Glass and E.O. Brody into The Anchor Hocking Company, the $220 million glassware manufacturer that Monomoy acquired out of Chapter 11 earlier this year.  Anchor operates facilities in Lancaster, Ohio and Monaca, Penn. and supplies a wide range of glassware products to mass-market retailers, consumer products companies, candle makers, specialty retailers and the lodging and food service industries. 

“We are extremely excited to welcome Indiana Glass and E.O. Brody to the Anchor family,” said Mark Eichhorn, the chief executive officer of Anchor.  “Their deep experience in the specialty and floral business is a perfect compliment to Anchor's presence in the retail and food service markets and will enable to us to more effectively serve both our current customers and adjacent sales channels.  The addition of these two businesses will greatly accelerate our plans to restore Anchor's position as the leading North American supplier of glassware products.”

Since acquiring the Company in April of this year, Monomoy has instituted a series of business improvement programs at Anchor that have substantially reduced operating expenses and increased profitability throughout the Company. 

“We are pleased with Anchor's progress following its emergence from bankruptcy,” said Stephen Presser, a Monomoy principal and chairman of The Anchor Hocking Company Board of Directors.  “We have challenged nearly every aspect of the Anchor business model over the past seven months, and the entire employee group has stepped forward to make Anchor a much stronger, much better company.”

Richard Porter and Josh Kogan of Kirkland & Ellis represented Monomoy in the acquisition; Conway MacKenzie & Dunleavy provided financial diligence; and acquisition financing was provided by National City Business Credit, CIT and Sovereign Bank.

About The Anchor Hocking Company

The Anchor Hocking Company is the leading North American designer, manufacturer and distributor of glassware to the retail, foodservice, candle and specialty markets.  Anchor's product line includes glass beverageware, bakeware and storage containers; glass candle containers; glass products for lighting and other industrial purposes; floral glass; and specialty glass items.  Anchor's customers include Wal-Mart, Target, Proctor & Gamble, specialty retailers, consumer products companies, hotels and restaurants.  The Company employs more than 2,000 team members at manufacturing and distribution facilities located in Ohio, Pennsylvania and Oklahoma.  For additional information on Anchor and its products, please visit www.anchorhocking.com.

About Monomoy Capital Partners, L.P.

Monomoy Capital Partners, L.P. is a $280 million private equity fund that makes controlling investments in middle market companies that require operational or financial restructuring.  Monomoy targets fundamentally sound businesses with revenues of less than $200 million and acquires businesses through bankruptcy proceedings, out-of-court restructurings, corporate divestitures and other complex transactions.  The Fund has completed 13 transactions over the past 26 months in the smaller end of the middle market and currently owns 10 business that collectively employ more than 5,000 people.   For additional information on Monomoy and its portfolio companies, please visit www.mcpfunds.com.