What's Next for Vitro America?
June 2, 2011
All eyes seem posed on Sun Capital, the private equity firm based in Boca Raton, Fla., following this morning’s announcement that Sun affiliate American Glass Enterprises has purchased the assets of Vitro America LLC through a court-supervised auction. Sun Capital is the parent company of Vitro America competitor Arch Aluminum & Glass LLC as well as United Glass Corp.
“We were not surprised to see this consolidation and expected the 'great recession' would alter the industry landscape,” says Kelly Schuller, Sr. vice president of sales and marketing for Viracon. “We view the combination of Arch, UGC and Vitro as a development that will aid in stabilizing and strengthening the industry going forward.”
At this point in time, glass and metal industry professionals are watching to see how the companies will work together.
“We’re still kind of watching. At this point, it’s too early to tell,” commented George Petzen, estimator for LinEl Signature. He added, “It all boils down to what the judge says, and the creditors committee.”
Before the sale is complete, Vitro America in consultation with the creditors committee must seek approval from the U.S. Bankruptcy Court for the District of North Texas, which should occur within the next week. Should any issues arise, back-up bidder Grey Mountain Partners LLC, which served as the stalking horse bidder in the auction, would have the ability to step in to purchase the company.
The purchase price was $61 million, well over the asking price of $44 million.
“From a supplier perspective this should mean a robust recovery,” commented Vitro America CEO Arturo Carrillo on the winning bid.
As of press time, representatives of Vitro S.A.B., the former Vitro America parent company based in Monterrey, Mexico, could not be reached for comment. Vitro America representatives have deferred comments to Sun Capital, which had not responded to requests for comment as of press time.
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