Blackstone-owned PGI Specialty Materials files for IPO

(Reuters) – Blackstone Group LP‘s (BX.N: Quote, Profile, Research, Stock Buzz) PGI Specialty Materials Inc, which makes materials that are used in products ranging from diapers to disinfectant wipes, filed with U.S. regulators for an initial public offering of common stock.

Blackstone, which owns nearly 98 percent of PGI, bought the company for $326.2 million in cash from private equity firm MatlinPatterson in 2010. (reut.rs/1y5Evv8)
PGI’s specialty materials are also used in used in feminine hygiene products and surgical gowns. The company’s customers include Procter & Gamble Co (PG.N: Quote, Profile, Research, Stock Buzz), Kimberly-Clark Corp (KMB.N: Quote, Profile, Research, Stock Buzz) and Cardinal Health Inc (CAH.N: Quote, Profile, Research, Stock Buzz).

BofA Merrill Lynch, Citigroup, Jefferies and Goldman Sachs & Co are among the underwriters for the IPO, the company said in a filing with the U.S. Securities and Exchange Commission on Tuesday.

The filing includes a nominal fundraising target of about $100 million but did not reveal how many shares the company planned to sell or their expected price.

The amount of money a company says it plans to raise in its first IPO filing is used to calculate registration fees. The final size of the IPO could be different.
The company also did not specify the exchange on which it intends to be listed.

PGI’s net loss nearly tripled to $97.05 million in the nine months ended Sept. 27. Net sales rose 2.2 percent to $1.51 billion.

Net proceeds from the offering would be used to redeem a portion of the senior secured notes and for general corporate purposes, the company said.