A subsidiary of kitchenware group EveryWare Global Inc. (Nasdaq: EVRY) has sold Oneida International Ltd. to a unit of Hilco Capital Ltd. for about $6.15 million.
EveryWare Global, headquartered in Lancaster, Ohio, sells a line of tabletop and food-preparation products under the Anchor Hocking, Anchor, Anchor Home, FireKing, Oneida, Buffalo China, Delco and Sant' Andrea brands. The company sells kitchen goods in Europe under the Viners, Mermaid, George Wilkinson, Great British Bakeware, Longlife and RTA brands.
The purchase price included debt repayment, including Oneida International's revolving credit facility with Burdale Financial Ltd. The sale includes Oneida's business in the U.K., not the rights to license the Oneida, Anchor Hocking or Sant' Andrea brands, which EveryWare still owns. The sale closed on Aug. 21, according to a filing with the U.S. Securities and Exchange Commission.
"Our energies are currently focused on solidifying our core North American operations, and this sale ensures that our resources are dedicated to those initiatives," says Sam Solomon, EveryWare CEO, in a statement.
The news comes after EveryWare announced that it got a $20 million investment from private equity firm Monomoy Capital Partners LP in the form of a securities purchase agreement. The additional money allowed the company to obtain a waiver on its term loan with Deutsche Bank AG, which it defaulted on when it failed to comply with the consolidated leverage ratio and interest-cover ratio covenants for the first half of the year.
In a May 15 SEC filing, the EveryWare said that the default raised substantial doubt about the company's ability to continue as a going concern, or without the threat of liquidation.
The company has been struggling because of challenges in the macroeconomic climate in North America and Western Europe. EveryWare's sales were down 4.5 percent for the first quarter, but the company says in an Aug. 14 SEC filing that market conditions have improved since then.
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