Tricor Pacific Capital has agreed to buy FabPro Oriented Polymers LLC from Polymer Group Inc. (OTC BB: POLGE). No financial terms were disclosed for the deal, which is expected to close within the next 30 days. FabPro is a Kingman, Kan.-based maker of performance polymers and synthetic fibers for the agricultural, construction and commercial segments.
Polymer Group, Inc. (OTC Bulletin Board: POLGE; POBLE) today announced it has reached an agreement to sell its wholly owned subsidiary, FabPro Oriented Polymers, LLC, to an affiliate of Tricor Pacific Capital, Inc. The agreement is subject to customary closing conditions and is expected to be completed within 30 days. Financial terms of the transaction were not disclosed.
The divestiture is part of PGI’s continued execution of its plan to focus on select core businesses built around growth platform technologies in the hygiene, medical, wipes and industrial segments.
The FabPro business includes manufacturing facilities in Kingman, Kansas, Clearfield, Utah, and a converting facility in Guntown, Mississippi. Following the sale, PGI will operate 14 manufacturing and converting facilities in eight countries throughout the world.
Based in Kingman, FabPro is one of the leading manufacturers, developers and marketers of high performance polymers and synthetic fibers for the agricultural, construction and commercial segments. Its products are used in a variety of niche applications, including agricultural twine and netting, concrete reinforcement and crack reduction, industrial tying and cable filling. Founded in 1975 as a greenfield operation for Exxon Chemical Co., FabPro was acquired by PGI in 1998.
“This transaction will allow us to further our strategy of establishing our position as a global leader in the nonwovens industry by focusing on our core markets,” said Veronica (Ronee) Hagen, chief executive officer. “FabPro has a promising outlook and we believe it will thrive under new ownership with a dedicated focus on its markets.”
“We are proud to add a high-quality asset like FabPro to our portfolio,” said Brad Seaman of Tricor Pacific Capital. “FabPro has top leadership positions in the agriculture and construction segments in North America and recognized brand names. We are eager to assist the management team in executing their growth plans and see strong growth potential as synthetic fibers increasingly replace steel and wire in many applications.”
PGI was advised by KeyBanc Capital Markets as financial advisor and Parker Poe Adams & Bernstein as outside legal counsel. Tricor was advised by Winston & Strawn as outside counsel.
Tricor Pacific Capital, Inc. is a leading private equity firm that invests in profitable, well-managed, middle-market companies located in the West and Midwest regions of the United States and Canada. Tricor currently manages approximately $1 billion of capital, and is investing its fourth fund with $555 million in committed capital. To learn more about Tricor, visit www.tricorpacific.com .
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.