Instant Brands announced that, following a comprehensive sale process and competitive auction, the United States Bankruptcy Court for the Southern District of Texas approved the company’s pursuing the sale of its housewares and appliance businesses to affiliates of Centre Lane Partners.
Private equity firm Centre Lane submitted a winning bid for Instant Brands of some $350 million, according to published reports. Centre Lane is also owner of the Lenox Corporation, which markets such brands as Lenox, Reed & Barton, Oneida, Oneida, Cambridge and Hampton Forge.
Instant Brands, supplier of the Instant Pot, Corelle, Pyrex, Snapware, CorningWare, Visions and Chicago Cutlery entered into asset purchase agreements with affiliates of Centre Lane, pursuant to which they will acquire Instant Brands’ housewares and appliance businesses in separate transactions subject to regulatory approval and other closing conditions in the U.S. and Canada. Instant Brands noted that the parties expect the transactions to close in the fourth quarter.
Instant Brands entered a voluntary Chapter 11 bankruptcy process in June. It received a commitment to new term loan financing in August. In announcing the sales to Centre Lane, a private New York-based investment firm focused on the equity and debt of middle-market companies in North America, Instant Brands maintained that it is taking the best option in dealing with an unsustainable capital structure.
“We believe our company’s sale to Centre Lane Partners represents the best path forward for our customers, retail partners, suppliers and employees,” said Ben Gadbois, Instant Brands president and CEO, in announcing the move. “Through this process, we have found a great solution to fix our unsustainable capital structure that allows our business to continue driving innovation through our portfolio of iconic brands for consumers around the world.”
