(Reuters) – Private equity firm Blackstone Group (BX.N) is in exclusive, early-stage talks to buy MatlinPatterson’s Polymer Group (POLGA.OB), a non-woven materials maker, a source familiar with the matter said on Tuesday.
Private equity firm MatlinPatterson has been trying to sell Polymer, in which it the largest shareholder, for months. Sources told Reuters in April that it was on the block and Blackstone was advising on the sale.
It is an unusual situation where Blackstone has acted as both adviser and potential acquirer.
MatlinPatterson owns about 65 percent of the company, according to Reuters data, picking up its controlling stake when Polymer emerged from bankruptcy in 2003. It has a market capitalization of more than $400 million, according to Reuters data.
Polymer Group makes non-woven fabrics used in diapers, bandages, food packaging and other products.
Bloomberg earlier reported Polymer’s exclusive talks.
All the parties declined comment or were not available for comment. (Additional reporting by Mike Erman; Editing by Bernard Orr)