United Glass Corporation Acquires Ten Companies
30 July 1999
United Glass Corporation Acquires Ten Companies; Consolidation Creates Largest Independent Glass Fabricator and Glass Services Company in North America
HOUSTON, July 29 -- United Glass Corporation (UGC) announced
today its formation as the largest independent glass fabrication and glass
services company in North America. Jim Bradford, President & CEO of UGC and
Byron Snyder, President of Sterling City Capital announced the consolidation
of ten highly successful glass fabrication and glass services companies with
operations nationwide, effective August 1, 1999.
Jim Bradford, former President of AFG Industries, Inc. since 1992, joins
UGC as President & Chief Executive Officer with over 15 years of experience in
the glass industry. "I am pleased to join this exciting venture," stated
Bradford. "The profitable and well established founding companies provide UGC
with a diversified group of glass fabrication and service companies located in
major markets across the nation. We believe that UGC is well positioned to
capitalize on significant industry trends due to our size, product and
geographic diversity and technical competence."
The cash portion of the acquisitions was funded through an $80 million
bank credit facility with Bank of America acting as lead administrative agent,
Fleet Capital acting as syndication agent and Credit Lyonnais acting as
documentation agent. In addition, the financing included a $15 million senior
subordinated bridge loan from Fleet Corporate Finance, Inc. Each owner of the
acquired companies received a significant portion of their purchase
consideration in the form of UGC stock.
Sterling City Capital, LLC served as financial sponsor in the
transactions. Sterling City Capital and its principal, C. Byron Snyder, have
founded or invested in several public and private companies which are
executing industry consolidation strategies, including Integrated Electrical
Services, Inc. and Carriage Services, Inc., both New York Stock Exchange
companies; American Plumbing and Mechanical, Inc. and Integrated Roofing &
Waterproofing, Inc.
"Sterling City Capital is proud to sponsor the formation of UGC and to
financially partner with a dynamic group of companies," stated Byron Snyder.
"Due to the strength of our management team and the successful combined
history of the UGC founding companies, we are well positioned to execute a
consolidation strategy in the growing market for value added glass products in
North America."
The companies joining in the initial consolidation include: the GlassWerks
Group of companies headquartered in Los Angeles, California, Perilstein
Distributing Corp. of Pittsburgh, Pennsylvania, Pdc Glass of Detroit,
Michigan, Hartung Glass Industries and Lami Glass Products of Seattle,
Washington, Thad Ziegler Glass, Inc. of San Antonio, Texas, TFC Inc. of
Louisville, Kentucky, Tempered Glass Inc. of Atlanta, Georgia, Louisville
Plate Glass of Louisville, Kentucky and Mid Ohio Tempering of Columbus, Ohio.
UGC operates 37 facilities across the United States and one Canadian province.
The GlassWerks Group was founded in 1979 and is headquartered in Los
Angeles, California. With additional facilities located in Phoenix, Arizona,
Las Vegas, Nevada and Anaheim, Sacramento, San Diego and San Francisco,
California, GlassWerks serves most major markets in the western and
southwestern United States.
Hartung Glass was founded in 1924 as F.L. Hartung Glass Co. Hartung is
headquartered in Seattle, Washington and operates additional facilities in
Anaheim and Sacramento, California, Pueblo, Colorado, South Bend, Indiana and
Vancouver, British Columbia. Hartung's affiliate, Lami Glass Products,
operates an additional facility in Vancouver, British Columbia. Hartung and
Lami primarily serve the northwestern United States.
Perilstein Distributing was founded in 1898 as H. Perilstein. Perilstein
is headquartered in Pittsburgh, Pennsylvania where it operates two facilities.
Perilstein affiliate, Pdc Glass of Michigan, was formed in 1997 to operate an
additional facility in Detroit, Michigan. Perilstein and Pdc Glass primarily
serve markets located in Michigan, Ohio, Pennsylvania and New York.
Thad Ziegler Glass was founded in 1893 and is headquartered in San
Antonio, Texas. Thad Ziegler Glass operates seven facilities in the San
Antonio area and serves principally central Texas. Thad Ziegler Glass
performs contract glazing (installation) services in addition to its
fabrication and distribution business.
TFC, Inc. was founded in 1980 and is headquartered in Louisville,
Kentucky. TFC operates three facilities in Louisville which manufacture
mirror glass elements, primarily for exterior car and truck mirrors. TFC
currently supplies mirror glass to Chrysler, Ford, General Motors, Navistar,
Nissan, Toyota and Volvo through Tier I automotive suppliers.
Tempered Glass was founded in 1984 and is headquartered in Atlanta,
Georgia. Tempered operates a facility in Atlanta which primarily serves
Georgia, Alabama, Tennessee, Kentucky and the Carolinas. Tempered is
51% owned by Louisville Plate Glass which is headquartered in Louisville,
Kentucky. Louisville Plate Glass was founded in 1968 and its facility in
Louisville primarily serves Kentucky, Indiana, Ohio and Tennessee.
Mid Ohio Tempering was founded in 1989 and is headquartered in Columbus,
Ohio. Mid Ohio operates a facility in Columbus that primarily serves markets
located in Ohio, Michigan, Indiana and Kentucky.
This news release contains "forward looking statements" within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, as amended. Although the Company believes that such
statements are based on reasonable assumptions, it can give no assurance that
its expectations will in fact occur. Important factors that could cause
actual results to differ materially from those in the forward looking
statements include, among other things, changes in national or regional
economic conditions affecting the construction industry, our ability to pursue
acquisition candidates as well as our ability to integrate acquired
businesses, federal and state regulatory developments, the Company's financial
leverage and the availability of skilled personnel, as well as other risk
factors.