Jan 30 2011
Scorpio Acquisition Corporation, an affiliate of Blackstone Capital Partners V L.P. (NYSE: BX) ("Blackstone"), has completed its previously announced acquisition of Polymer Group, Inc. ("PGI"). The transaction helps continue to position PGI as a leader in the nonwovens industry.
PGI's chief executive officer, Veronica (Ronee) M. Hagen, stated, "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."
Anjan Mukherjee, a Senior Managing Director of Blackstone, added, "Blackstone is excited to close on the acquisition of Polymer Group. We look forward to working with the management team to further enhance the company's already strong global position and reputation and to extend its reach into new products and markets."
Each holder of shares of PGI common stock will receive $15.32 in cash per share promptly following today's closing, which is equal to $18.23 per share minus the previously-announced per share amount of $2.91 that will be held in an escrow to cover liabilities, costs and expenses related to the application of the "personal holding company" rules of the Internal Revenue Code of 1986, as amended, to PGI and its subsidiaries. Each such holder will also 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 related to the merger. The acquisition was funded via a combination of new senior secured notes and a significant equity contribution by affiliates of Blackstone.