Sun Capital outbids Grey Mountain for Vitro America
After hours of intense negotiations, and 23 rounds of bidding yesterday, Sun Capital Partners outbid Grey Mountain Partners for Vitro SAB's U.S. subsidiary Vitro America. The winning bid was approximately $61 million, a substantial increase over the original $44 million price. Sun Capital must close the sale by June 17, 2011, or Grey Mountain, the back-up bidder, can step back in. The sale is now awaiting court approval.
Sun Capital Partners is a private investment firm specializing in leveraged buyouts and investments. It purchased Arch Aluminum & Glass, Tamarac, Fla., in February 2010, and more recently acquired United Glass Corp., Louisville, Ky.
"We are delighted with the successful outcome of the bidding process for Vitro," said Jeff Leone, CEO of Arch Aluminum & Glass, in a statement to Glass Magazine. "Now, the real work begins to consolidate our three companies: Arch, United Glass Corp., and Vitro. Our mission remains to create the leading glass fabrication business in North America by focusing on quality and service to our customers: on time, on spec, on cost."
The announcement follows an auction process that began this spring after Vitro SAB subsidiaries Vitro America, Super Sky International, Super Sky Products and VVP Finance Corp. filed for relief under Chapter 11 of the U.S. Bankruptcy Code. At that time, officials also announced they had entered into an agreement to sell substantially all of the assets of Vitro America and Super Sky to an affiliate of Grey Mountain Partners, a private equity firm in Boulder, Colo., for a purchase price of $44 million.
Shortly thereafter, American Glass Enterprises LLC, an affiliate of Sun Capital Partners, expressed interest in purchasing the subsidiaries as well. Stay tuned to GlassMagazine.com as more details become available.