Corning Inc announced in August that its Board of Directors had approved a definitive agreement for a recapitalisation of its consumer housewares business and the sale of a controlling interest in the business to a company formed by AEA Investors Inc. AEA is an investment firm that makes controlling investments in market-leading companies on behalf of its investors. Corning entered the consumer housewares business in 1915 with its invention of Pyrex ovenware. The planned transaction involves a recapitalisation of Corning Consumer Products Co that will result in cash proceeds to Corning of approx. US$975m. Corning will retain an 11% stake in Corning Consumer Products Co. An after-tax gain in excess of US$250m is expected upon the completion of the transaction, expected to occur in the fourth quarter of 1997.
