Blackstone To Acquire PGI

Charlotte-based nonwovens producer Polymer Group Inc. (PGI) has agreed to be purchased by an affiliate of Blackstone Capital Partners V LP, a New York City-based private investment and advisory firm. The total value of the transaction is not clear, but holders of PGI common stock will receive approximately $15.25 per share upon closing, plus a ratable share of additional monies upon their release from an escrow account that will be set up to cover certain potential tax-related obligations. The transaction is expected to be finalized before the end of first-quarter 2011.

“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,” said Veronica “Ronee” M. Hagen, CEO, PGI. “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.”

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

SOURCE: TEXTILE WORLD

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