Aug 25 2009
Polymer Group, Inc. (OTC Bulletin Board: POLGE; POBLE) today announced it has reached an agreement to sell its wholly owned subsidiary, FabPro Oriented Polymers, LLC, to an affiliate of Tricor Pacific Capital, Inc. The agreement is subject to customary closing conditions and is expected to be completed within 30 days. Financial terms of the transaction were not disclosed.
The divestiture is part of PGI's continued execution of its plan to focus on select core businesses built around growth platform technologies in the hygiene, medical, wipes and industrial segments.
The FabPro business includes manufacturing facilities in Kingman, Kansas, Clearfield, Utah, and a converting facility in Guntown, Mississippi. Following the sale, PGI will operate 14 manufacturing and converting facilities in eight countries throughout the world.
Based in Kingman, FabPro is one of the leading manufacturers, developers and marketers of high performance polymers and synthetic fibers for the agricultural, construction and commercial segments. Its products are used in a variety of niche applications, including agricultural twine and netting, concrete reinforcement and crack reduction, industrial tying and cable filling. Founded in 1975 as a greenfield operation for Exxon Chemical Co., FabPro was acquired by PGI in 1998.
"This transaction will allow us to further our strategy of establishing our position as a global leader in the nonwovens industry by focusing on our core markets," said Veronica (Ronee) Hagen, chief executive officer. "FabPro has a promising outlook and we believe it will thrive under new ownership with a dedicated focus on its markets."
"We are proud to add a high-quality asset like FabPro to our portfolio," said Brad Seaman of Tricor Pacific Capital. "FabPro has top leadership positions in the agriculture and construction segments in North America and recognized brand names. We are eager to assist the management team in executing their growth plans and see strong growth potential as synthetic fibers increasingly replace steel and wire in many applications."