Corning Reaches Agreement to Sell Steuben
CORNING, N.Y., July 23, 2008 – Corning Incorporated (NYSE:GLW) announced today that it has reached an agreement to sell its Steuben® Glass Division to Steuben Glass LLC, a newly formed affiliate of Schottenstein Stores Corporation (SSC). Schottenstein Stores Corporation is a multi-billion dollar private equity company focused on retail and luxury holdings. The transaction is expected to be finalized in the third quarter.
Steuben Glass LLC will continue the Steuben operations in Corning, as well as retail sales in the New York City flagship store located at 667 Madison Avenue. Corning Incorporated will maintain a 19.9% equity ownership stake in Steuben Glass LLC. The sale price and other terms are not being disclosed.
"We couldn't be more thrilled for the employees of Steuben, its customers and the residents of Corning, N.Y.," said James B. Flaws, vice chairman and chief financial officer. "Schottenstein Stores Corporation is one of the premier private retail institutions in America. Not only do they understand and appreciate the value of the Steuben brand and its quality products, they are enthusiastic about adding Steuben to their family of luxury brands," he said. "Their commitment to continuing operations in Corning is a testament to the professionalism and dedication of the Steuben workforce," Flaws added.
Steuben will join the Schottenstein Luxury Group (SLG) portfolio that includes the iconic American brand, Judith Leiber and the Italian fashion brand, Shirò. SLG is focused on the development of prestigious brands that present opportunities for growth in the global marketplace. The Steuben brand's distinct voice, rich heritage and unique position make it a perfect addition to the SLG portfolio.
Jay L. Schottenstein, chairman and chief executive officer of Schottenstein Stores Corporation, said, "Steuben Glass is a national treasure. I am excited and pleased to be able to ensure that Steuben, synonymous with quality, will become a member of the Schottenstein portfolio of world class luxury brands." Schottenstein said that SSC is prepared to dedicate significant retail management expertise and resources to enable Steuben to achieve its full potential. "We are fully prepared to grow and expand the business and believe there is tremendous opportunity to extend the Steuben brand in key markets around the world," he said.
Marie McKee, president of the Steuben Glass Division, said "While it was an extremely difficult decision to sell Steuben, we are tremendously pleased that Jay Schottenstein is committed to continuing the Steuben brand's tradition and history. We look forward to our partnership."
Lincoln International LLC served as financial advisor and Nixon Peabody served as legal advisor to Corning Incorporated. Financo, Inc. served as financial advisor and Wachtell, Lipton, Rosen & Katz served as legal advisor to Schottenstein Stores Corporation.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in specialty glass and ceramics. Drawing on more than 150 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. Our products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy and metrology.
About Schottenstein Stores Corporation
Schottenstein Stores Corporation (SSC) is a privately held family of businesses affiliated with: American Eagle Outfitters (NYSE); Martin and Osa; aerie; Retail Ventures Inc. (NYSE) which is the parent of DSW, also a NYSE listed company and Filene's Basement; American Signature Inc/Value City Furniture, Adrienne Vittadini, Judith Leiber and Shirò.
Media Relations Contacts:
Daniel F. Collins
Schottenstein Luxury Group
Lee D. Applbaum