Anchor Glass To Be Sold For Third Time Since 2012

By Mike Perleberg Anchor Glass Container Corporation's factory in Greendale. (Greendale, Ind.) – One of Dearborn County’s largest employers is again changing ownership. Anchor Glass Container Corporation employs about 300 people at its plant in Greendale. On Wednesday, Anchor Glass owner KPS Capital Partners announced a more than $1 billion deal to sell Anchor Glass to a private equity firm called CVC Capital Partners. CVC is partnering with BA Glass B.V., a leading European manufacturer of glass containers. It’s the latest change in ownership for the local factory with a can’t-miss big, blue warehouse along Ridge Avenue. Luxembourg-based Ardagh Group purchased Anchor Glass for $880 million from Wayzata Investment Partners LLC in 2012. Two years later in 2014, Ardagh sold it to KSP for $500 million – half the price KSP is now selling the company for. “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,” said Jay Bernstein, a partner of KPS. “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.” Anchor CEO Jim Fredlake said KPS was the only investor to recognize the potential value of the glass 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,” Fredlake said. It is unclear how the sale may impact any of Anchor Glass’ 2,000 employees at facilities in eight states. However, reading the tea leaves from executives’ statements gives a positive impression. “Anchor is a high quality business, with a talented leadership team, and we are very excited to partner with Jim Fredlake and his team. Together with our partners at BA Glass, we look forward to supporting Anchor's growth as it continues to capitalize on market opportunities,” said Thomas Kichler, Partner and US Head of Industrials and Energy at CVC. “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,” Bernstein stated. The newly announced deal is expected to close by the end of this year. RELATED STORIES: Deal Would Restore Anchor Glass Name At Greendale Factory, Others Anchor Glass Sold To European Manufacturer