Central Glass Co. and Zeledyne Pen Agreement for Proposed Sale of Certain Zeledyne Assets, including Nashville Manufacturing Plant and Carlite Business
January 6, 2011
Japan-based Central Glass Co. Ltd. and Zeledyne LLC have announced that they have signed a definitive agreement for "the proposed purchase of certain assets owned by Zeledyne LLC." Among the assets included in the proposed sale are Zeledyne's Nashville, Tenn., plant, which manufactures auto glass for both the OE and aftermarket segments; and the Carlite aftermarket replacement glass business, according to statements from both companies.
According to the announcement, the two companies expect the sale to close early this year. Terms of the deal have not been disclosed.
"With the signing of these agreements, Zeledyne and Central Glass begin the final phase of negotiations on details associated with the proposed sale," writes Zeledyne in its statement. "No timetable has been announced for these confidential negotiations."
Zeledyne spokesperson Della Dipietro advised the agreement to sell came as a result of the continued downturn in the economy.
"Despite aggressive cost-cutting and operational improvements Zeledyne has been unable to achieve its performance objectives, in part due to the severe economic downturn," Dipietro told glassBYTEs.com™/AGRR magazine in an interview this morning.
The company’s operations in Tulsa, Okla., and Juarez, Mexico, along with its Allen Park, Mich., headquarters were not included in the announcement.
As the sale has not yet been completed, for now it’s business as usual at Zeledyne.
“There’s no immediate impact,” said Dipietro.
Central Glass owns Central Saint-Gobain Ltd., Japan Tempered and Laminated Glass and Carlex Glass Co., among several other subsidiaries. The Nashville facility would be Central Glass’s second in Tennesee, as Carlex is based in Vonore, Tenn.—just under 200 miles away from Nashville.
Likewise, Carlex, which manufactures OE windshields, sidelites, backlites and sunroofs, shares similar roots with Zeledyne. Carlex was originally founded as a joint venture between Central Glass and the Ford Glass Division, before Central Glass gained 100 percent ownership, according to information from Carlex. Similarly, Zeledyne was formed in 2008 and purchased Ford’s Automotive Components Holdings (ACH) glass business, along with its Nashville and Tulsa plants, its Vidriocar subsidiary in Juarez, a warehouse in Lebanon, Tenn., and the Allen Park offices
Central Glass officials declined to comment, deferring all media inquiries to Dipietro, according to a representative at the Carlex plant.
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