Cornell Capital has signed an agreement to acquire World Kitchen, a manufacturer and marketer of housewares, from Oaktree Capital and W Capital Partners.
World Kitchen manufactures and market its products – such as bakeware, dinnerware, kitchen and household tools, range-top cookware, storage and cutlery – worldwide. Brand names include Pyrex, Corelle, Corningware, Snapware, Chicago Cutlery, Revere, Visions, Ekco and Baker’s Secret. Pyrex and CorningWare are registered trademarks of Corning Inc. and are used license by World Kitchen.
World Kitchen began its operations as the Corning Consumer Products division of glassmaker Corning. The division was spun off from Corning in 1998 and purchased by Borden. As part of the sale to Borden, the company was required to change its name within three years and the World Kitchen name was adopted in 2000. In 2002 the company filed for bankruptcy and underwent a financial reorganization. In 2004 the company emerged from bankruptcy as a portfolio company of Oaktree Capital and W Capital Partners. Today, the company has approximately 3,000 employees with manufacturing and distribution operations in North America and Asia-Pacific regions. World Kitchen is headquartered in the Chicago suburb of Rosemont, IL (www.WorldKitchen.com).
Cornell Capital was founded in 2013 by Henry Cornell, the former Vice Chairman of Goldman Sachs’ Merchant Banking Division, to invest in companies in the consumer, energy, financial and industrial sectors. The firm is based in New York (www.cornellcapllc.com).
Cornell Capital and World Kitchen intend to pursue strategic consolidation opportunities within the fragmented $80 billion global housewares industry. “World Kitchen possesses an unmatched portfolio of iconic brands that have been at the heart of homes worldwide for over 100 years,” said Mr. Cornell. “The company creates truly differentiated and premium products for its customers and has exceptional potential to build upon its strong foundation. The Cornell Capital team is uniquely positioned to bolster World Kitchen’s presence in new and existing markets, and we look forward to collaborating with the company to create a global consumer goods powerhouse.”
“Our partnership with Cornell Capital will enable World Kitchen to capitalize on our strong position in the United States, where our products are in more than 80 percent of all homes, and our growing presence in high-growth emerging markets,” said Carl Warschausky, CEO of World Kitchen. “We look forward to leveraging the extensive experience, deep industry expertise and global network of Cornell Capital to continue offering enhanced opportunities for our employees and delivering superior products for our customers.”
Citi acted as financial advisor to Cornell Capital in connection with the transaction and Morgan Stanley & Co. advised World Kitchen.
The acquisition is expected to be completed during the second quarter of 2017.
© 2017 Private Equity Professional | April 3, 2017
