Brockway Glass Co., Inc.
List of Deals
- 1969 Brockway Glass Company, Inc.: exchange offer by Continental Can Company, Inc., to holders of its common stock of 1,000,000 shares of class A stock ($5 par value) of Brockway Glass Company, Inc.
Brockway Glass Company, Inc., was incorporated in New York in June 1907. The Brockway facility dates back to 1907 also, when it was owned by Brockway Machine Bottle Co. Brockway Machine Bottle Co. later became Brockway Glass, and the principal executive offices were in Brockway, Pennsylvania. Since its incorporation, Brockway was continuously engaged in the manufacture and sale of various types of glass containers. It also engaged in the manufacture and sale of glass tubing, plastic vials, fitments, and related products. The manufacture and sale of the plastic products was conducted by Celluplastics, Inc., of Fitchburg, Massachusetts, and Custom Plastics Corporation, of West Springfield, Massachusetts, both wholly owned subsidiaries of Brockway.
The Hazel Atlas Company was established in 1902 as a result of the merger of Hazel Glass Company and Atlas Glass and Metal Company. Hazel Atlas went on to become one of the largest producers of inexpensive glassware for household use. Continental Can Company purchased Hazel Atlas in 1956, and it became the tableware division of Continental Can Company. Continental Can Company sold six Hazel Atlas factories to the Brockway Glass Company in 1964 as part of a lawsuit settlement. The sale of the plants was to be part of a divestiture plan by Continental Can; however the plan stemmed from a Justice Department claim that the company's 1956 acquisition of Hazel-Atlas Co. violated the Clayton Antitrust Act. The transfer of the plants was ultimately included in the settlement of the antitrust suit. A federal judge approved Continental's plan to retain two of the acquired plants and sell eight others to Brockway. G. A. Mengle, president of Brockway at the time (1964), said that stockholders of the company would be asked to approve a change in the designation of present common stock to class A stock, an increase in the number of authorized class A shares from two million to ten million, and authorization for the one million shares of new $5 par class B stock to be issued to Continental.
Brockway realized that operations at the Hazel-Atlas facilities had not been profitable and that a substantial capital expenditure program would be required to revitalize the plants. Control of Brockway was not to transfer to Continental. The acquisition gave Brockway the ability to expand its product line into areas such as cosmetic and home-canning containers and gave Brockway the facilities to produce opal and blue glass.