Steelite International, a portfolio company of Arbor Investments, has acquired the foodservice divisions of sister companies Homer Laughlin China Company and Hall China Company (together HLC). Arbor acquired Steelite from PNC Riverarch in December 2019.
Steelite is a designer, manufacturer, and distributor of dinnerware, glassware, flatware and other tabletop products to restaurants, hotels, casinos, cruise lines and other foodservice operators. The company’s products are made from china, metal, glass, wood and melamine.
Steelite also considers itself a world leader in the manufacture and distribution of tabletop ranges used by many of the largest international restaurant and hotel chains, and independent restaurants. Steelite, led by CEO John Miles, was founded in 1983 and is co-headquartered in New Castle, Pennsylvania and Stoke-On-Trent, UK. The company has a 500,000 square foot manufacturing facility that enables it to service its customers located in more than 140 countries.
The Homer Laughlin China Company (HLC) – headquartered in Newell, West Virginia – was founded in 1871 by Homer and Shakespeare Laughlin and was acquired in 1897 by William Wells and Louis Aaron. The business is owned by third, fourth and fifth-generation members of the Wells and Aaron families.
HLC’s existing Fiesta retail tableware business is not part of the sale, and Fiesta’s headquarters and manufacturing – now renamed The Fiesta Tableware Company – will remain in Newell, West Virginia. Steelite will take over the manufacturing and sales of HLC’s foodservice product lines and will become the exclusive seller of Fiesta brand products to the foodservice market.
Elizabeth Wells McIlvain, president of HLC, said that the Wells family entered into the sale of the foodservice divisions in order to focus exclusively on Fiesta brand of retail dinnerware which was launched in January 1936 at the Pittsburgh China & Glass Show.
“The decision to sell the foodservice division was very difficult for the Wells family, and we deliberated and considered it thoughtfully,” said Ms. McIlvain. “We wanted to find a home for our foodservice customers with a manufacturer who could take on the reputation for excellence and the beloved shapes and patterns that we’ve been proud to manufacture for more than 60 years. Steelite is that company.”
“We are very pleased to acquire the HLC brands for the hospitality market,” said Mr. Miles. “In working with the Wells family, we understood we needed a creative solution since we were only acquiring a portion of the business. We took a step back to analyze the situation and came up with an imaginative and collaborative plan that achieved both parties’ goals, which were for Steelite to acquire and sell HLC and Hall China brands to the Americas foodservice market and for Fiesta’s production to stay in America at the current HLC facility on the Ohio River. As we take over the manufacturing of the foodservice ranges, our number one priority at Steelite will be to supply HLC and Hall China customers with the same quality, durability, and body composition the brands are known for in our industry.”
Arbor invests in the food, beverage and related industries. Typical targets will have annual revenues of up to $300 million and EBITDA from $5 million to $50 million. Since founding in 1999, the firm has acquired or invested in over 70 North America-based food, beverage and related companies. In July 2016, Arbor closed its fourth equity fund, Arbor Investments IV LP, with $765 million of capital and its first subordinated debt fund, Arbor Debt Opportunities Fund I LP, with $125 million of capital. Arbor is headquartered in Chicago with an additional office in New York.
© 2020 Private Equity Professional | March 27, 2020
