CHARLOTTE, N.C., Jan. 28, 2011 /PRNewswire/ -- 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.
Cravath, Swaine & Moore LLP and Blackstone Advisory Partners L.P. acted as legal and financial advisor, respectively, to PGI. Janney Montgomery Scott LLC acted as financial advisor to PGI's special committee. Richards, Layton & Finger, P.A. acted as legal advisor to PGI's special committee. Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone.
About Polymer Group, Inc.
Polymer Group, Inc., one of the world's leading producers of nonwovens, is a global, technology-driven developer, producer and marketer of engineered materials. With the broadest range of process technologies in the nonwovens industry, PGI is a global supplier to leading consumer and industrial product manufacturers. The company operates 14 manufacturing and converting facilities in nine countries throughout the world. Further information is available at www.polymergroupinc.com.
About The Blackstone Group
The Blackstone Group is one of the world's leading investment and advisory firms. Its alternative asset management businesses include the management of private equity funds, real estate funds, hedge funds, credit-oriented funds, collateralized loan obligation vehicles (CLOs) and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com.