Dive Brief:
- Following a competitive auction, the U.S. Bankruptcy Court for the Southern District of Texas approved a sale of Instant Brands to private equity firm Centre Lane Partners, according to a company announcement.
- Centre Lane Partners will acquire the company in two separate transactions, both of which are subject to regulatory approval and closing conditions in the U.S. and Canada.
- The transactions are expected to close in the fourth quarter of this year.
Dive Insight:
The maker of popular kitchen brands Corelle, Pyrex and Instant Pot has found a new home.
Instant Brands, which was majority owned by private equity firm Cornell Capital since 2019, filed for Chapter 11 bankruptcy in June. At that time, CEO Ben Gadbois said the company’s capital structure, including its debt levels, were unsustainable. The company soon began to solicit offers to sell the business.
"We believe our Company's sale to Centre Lane Partners represents the best path forward for our customers, retail partners, suppliers and employees," Gadbois said in a statement. "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."
The company in August received $30 million in new term loan financing from its existing lenders, which, on top of previous commitments, brought the total to $162.5 million.
According to the company, 90% of American homes — and millions of homes globally — have or use an Instant Brands product. The Instant Pot in particular saw a rise in popularity during the 2018 holiday season, where Kohl’s sold 60 per minute on Thanksgiving.
