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EXHIBIT 99
[LIBBEY LOGO] LIBBEY INC.
300 MADISON AVE
P.O. BOX 10060
TOLEDO, OH 43699
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N E W S R E L E A S E
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
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KENNETH WILKES KENNETH BOERGER SUZY LYNDE
VP/CFO VP/TREASURER ANALYST INQUIRIES
(419) 325-2490 (419) 325-2279 (312) 640-6772
FOR IMMEDIATE RELEASE
MONDAY, JUNE 18, 2001
LIBBEY INC. TO ACQUIRE ANCHOR HOCKING BUSINESS OF NEWELL
RUBBERMAID
Acquisition of glassware company expected to add over $200 million annually to
Libbey's sales and add to earnings per share in the first year
TOLEDO, OHIO, JUNE 18, 2001--LIBBEY INC. (NYSE: LBY) and Newell Rubbermaid Inc.
(NYSE: NWL) announced today that LIBBEY has signed a purchase agreement to
acquire the Anchor Hocking consumer and specialty glass business of Newell
Rubbermaid in a stock purchase for approximately $332 million in cash. In
addition, Libbey and Newell Rubbermaid expect to make an election under
338(h)(10) of the Internal Revenue Code with respect to the tax treatment of the
transaction, which is expected to provide significant additional tax benefits to
Libbey.
The Anchor Hocking business manufactures and markets a wide-range of glass
products, including beverageware, bakeware, ovenware, serveware, candle
containers, vases, storageware and to a lesser extent industrial glass items
used by original equipment manufacturers. It operates manufacturing and
distribution facilities in Lancaster, Ohio and Monaca, Pennsylvania and employs
approximately 1,900 associates.
Libbey has received commitments from Bank of America, Bank One and Bear, Stearns
& Co. Inc. to finance the acquisition, refinance Libbey's existing credit
facility, and provide additional liquidity through a new $625 million bank
facility to be arranged.
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The acquisition is consistent with Libbey's external growth strategy, with
benefits that include:
- - increasing its presence in the global glass tableware market;
- - utilizing Libbey's proprietary glass making technology and processes to
enhance Anchor Hocking's product features;
- - improving the cost structure of the combined companies by utilizing the
relative advantages of each business with clear opportunities to enhance
profits; and
- - strong historical cash flow generation that contributes to an accretive
transaction.
Anchor Hocking generated net sales and earnings before interest, income taxes,
depreciation and amortization (EBITDA) in the twelve-month period ending March
31, 2001 of approximately $215 million and $54 million, respectively.
The acquisition of Anchor Hocking is expected to be earnings per share accretive
to Libbey in the first full year after closing under existing purchase
accounting rules by approximately $.10 to $.15 per diluted share, and $.50 to
$.55 per diluted share excluding goodwill amortization associated with the
transaction. In addition, management believes even greater earnings accretion
will be fully realized over time as it achieves the benefits available with the
combination.
The transaction will add significantly to the sizable cash flow generated by
Libbey and contribute to the Company's track record of strong cash return on
invested capital, regular debt reduction and increasing financial strength over
time. In addition, the Company expects that the election under Section
338(h)(10) will provide tax savings of approximately $5 million per year for the
next fifteen years.
John F. Meier, Libbey's chairman of the board and chief executive officer,
stated "This acquisition is a great financial and strategic fit for Libbey and
offers the promise of profitable growth. Joining with Anchor Hocking is
consistent with our established goals to grow our business by utilizing our
glass making skills to provide high quality, distinctive products to more
customers globally and become a more efficient provider of a broad range of
tableware products."
The closing of the acquisition is subject to customary conditions, including
those of the financing commitments, and regulatory approval including expiration
of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
WEBCAST INFORMATION
Libbey will hold a conference call for investors on Monday, June 18, 2001 at
4:30 p.m. Eastern Daylight Time. The conference call will be simulcast live on
the Internet, accessible on both www.libbey.com and www.streetfusion.com. To
listen to the call, please go
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to the website at least 15 minutes early to register, download and install any
necessary software. A replay will also be available for 7 days after the
conclusion of the call.
The above information includes "forward-looking" statements as defined in the
Private Securities Litigation Reform Act of 1995. Such statements only reflect
the company's best assessment at this time, and are indicated by words or
phrases such as "goal," "expects, " believes," "will," "estimates,"
"anticipates," or similar phrases.
Investors are cautioned that forward-looking statements involve risks and
uncertainty, that actual results may differ materially from such statements, and
that investors should not place undue reliance on such statements.
Important factors potentially affecting performance include devaluations and
other major currency fluctuations relative to the U.S. dollar that could reduce
the cost-competitiveness of the company's products compared to foreign
competition; the effect of high inflation in Mexico and exchange rate changes to
the value of the Mexican peso and the earnings and cash flow of the company's
joint venture in Mexico, Vitrocrisa, expressed under U.S. GAAP; the inability to
achieve savings and profit improvements at targeted levels in the company's
glassware sales from its production realignment efforts and re-engineering
programs, or within the intended time periods; inability to achieve targeted
manufacturing efficiencies at Syracuse China and cost synergies between World
Tableware and the company's other operations; significant increases in interest
rates that increase the company's borrowing costs and per-unit increases in the
costs for natural gas, electricity, corrugated packaging, and other purchased
materials; protracted work stoppages related to collective bargaining
agreements; increased competition from foreign suppliers endeavoring to sell
glass tableware in the United States: major slowdowns in the retail, travel or
entertainment industries in the United States, Canada and Mexico; whether the
company completes any significant acquisition, and whether such acquisitions can
operate profitably.
In addition, there are factors that could cause the expected results of the
acquisition of Anchor Hocking to differ materially from those anticipated by
these statements. These include the successful and timely outcome of regulatory
reviews, satisfactory operation of the Anchor Hocking business prior to closing
and the successful transition of the Anchor Hocking business, including
achieving cost savings initiatives.
Libbey Inc.:
- - is a leading producer of glass tableware in North America;
- - is a leading producer of tabletop products for the foodservice industry;
- - exports to more than 80 countries; and,
- - provides technical assistance to glass tableware manufacturers around the
world.
Based in Toledo, Ohio, the company operates glass tableware manufacturing plants
in California, Louisiana, and Ohio. In addition, Libbey is a joint venture
partner in the largest glass tableware company in Mexico. Through its Syracuse
China subsidiary, the company designs, manufactures and distributes an extensive
line of high-quality ceramic dinnerware,
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principally for foodservice establishments in the United States. Through its
World Tableware subsidiary, the company imports and sells a full-line of metal
flatware and holloware and an assortment of ceramic dinnerware and other
tabletop items, principally for foodservice establishments in the United States.
In 2000, its net sales totaled $441.8 million.
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