Blackstone acquires Polymer Group, Inc. for $64.5 million

Blackstone acquires Polymer Group, Inc. for $64.5 million

2010-10-05 04:34:55 GMT+7 (ICT)

CHARLOTTE, NORTH CAROLINA (BNO NEWS) -- Polymer Group, Inc. (PGI) on Monday announced it has entered into a definitive agreement to be acquired by an affiliate of Blackstone Capital Partners V L.P. for $64.5 million, or approximately $2.91 per share.

PGI's most recent financial statements reflected a liability for uncertain tax positions associated with the "personal holding company" (PHC) rules of approximately $24.5 million. However, PGI has initiated discussions with the IRS to request a series of rulings on the PHC issue, and the actual tax liability related to the PHC issue, whether higher or lower than the amount reflected on PGI's financial statement, will be determined based on the results of such process.  

As a result of the reserve of the escrow funds, each holder of outstanding shares of PGI common stock will be entitled to receive approximately $15.25 at closing, and will be entitled to receive its ratable share of any additional amounts if and when released from the escrow fund in accordance with the definitive agreement.

"The sale to Blackstone is the culmination of our strategic review process and we believe that this transaction represents the best value alternative available to our stockholders. Blackstone is committed to supporting our strategy of continued growth and investment in proprietary capabilities in our markets around the globe. The leadership team and all of the employees of PGI are excited to begin the next chapter at PGI and to maintain our position as a global industry leader," PGI's chief executive officer, Veronica (Ronee) M. Hagen, said.

"Polymer Group is an attractive company because of its leading position in the nonwovens industry and its strong footprint in high growth developing markets. The Company has a talented management team, which we believe has much to achieve with our support and financial resources," Chinh E. Chu, a Senior Managing Director of Blackstone, added.

The board of directors of PGI, acting on the recommendation of a special committee consisting of independent members of PGI's board of directors, has unanimously approved and declared advisable the definitive agreement and the transactions contemplated thereby.  

This transaction is the result of the strategic review process initiated by PGI on April 7, and is expected to close prior to the end of the first quarter of 2011.

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