Buyout shop Blackstone has failed to find a buyer for its portfolio company GoldToeMoretz, one of the world’s largest sock makers, Reuters said, citing a report in the New York Post. The report said that Blackstone wanted $450 million for the company, an amount that would allow Blackstone to repay debt and leave GoldToeMoretz profitable.
(Reuters) – Blackstone Group sought a buyer for one of the world’s largest sock companies this year, but could not find someone willing to pay a high enough price, the New York Post said.
The private equity firm could not find a buyer for GoldToeMoretz at a price that would allow Blackstone to pay back GoldToe’s loans and leave it profitable, the paper said.
Warren Buffett’s Berkshire Hathaway , which owns clothing companies Fruit of the Loom, Gildan and Hanesbrands and fellow private equity firm Kelso, which owns sock maker Renfro, was not willing to pay $450 million for GoldToeMoretz, a source close to the situation told the Post.
Blackstone is now looking to arrange an asset-based loan for the company, the source said.
A Blackstone spokesman declined to comment to the paper. Blackstone could not immediately be reached for comment by Reuters.
(Reporting by S. John Tilak in Bangalore; Editing by Hans Peters)