Pittsburgh Glass Works, a portfolio company of Kohlberg & Company, has been sold to LKQ Corporation for $635 million. Kohlberg & Company first invested in Pittsburgh Glass Works in October 2008 when it acquired the company from PPG Industries.
Pittsburgh Glass Works (PGW) is a wholesale and retail distributor and manufacturer of automotive glass. PGW’s revenue for the twelve months ended October 31, 2015 was approximately $1.1 billion. Products include OEM windshields, rear and side windows, sunroofs and assemblies sold to auto and truck manufacturers. The company also supplies and distributes replacement automotive glass products for use in the aftermarket. PGW operates approximately 120 distribution branches serving over 7,000 automotive glass retailer shops across North America. The company also operates 12 automotive glass fabrication facilities in North America, Europe and China. PGW is headquartered, of course, in Pittsburgh (www.pgwglass.com).
Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on companies with EBITDAs between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg & Company is currently investing its seventh private equity fund, Kohlberg Investors VII. The firm was founded in 1987 and is based in Mt. Kisco, NY (www.kohlberg.com).
LKQ Corporation (NASDAQ: LKQ), is a provider of alternative and specialty parts to repair and accessorize automobiles, trucks, and recreational and performance vehicles. The company was founded in 1998 and has made more than 200 acquisitions since its formation. LKQ is headquartered in Chicago and has operations in North America, the United Kingdom, the Netherlands, Belgium, France, Scandinavia, and Taiwan (www.lkqcorp.com). LKQ will finance the buy of PGW with borrowings under an existing revolving credit facility that has approximately $2.2 billion of availability.
Ropes & Gray provided legal counsel to Kohlberg & Company and Pittsburgh Glass Works. The Ropes & Gray team, which was led by private equity partner Christopher Rile and private equity associates Laura Steinke and Catherine Riley (all of New York), also included tax partner Eric Elfman (Boston), executive compensation & employee benefits partner Loretta Richard (Boston), labor & employment partner David Mandel (Boston), real estate & environmental partner Peter Alpert (Boston), and intellectual property transactions partner David McIntosh (Boston).
Jefferies (www.jeffries.com) and Nomura Securities (www.nomura.com) served as financial advisor to Kohlberg & Company and Pittsburgh Glass Works.
© 2016 PEPD • Private Equity’s Leading News Magazine • 2-29-16
