We just received this very exciting announcement from International Textile Group. For those of you unfamiliar with the name, ITG’s businesses include: Burlington, Cone Denim, Safety Components and Carlisle Finishing. The company employs approximately 4,800 people worldwide with operations in the United States, Mexico and China. Of you wear our nation’s uniform, you know ITG.
October 24, 2016, Greensboro, NC – International Textile Group, Inc. (ITG or the Company) announced today that it has been acquired by Platinum Equity through a completed merger with an affiliate of Platinum Equity. In the merger transaction, a newly formed Platinum Equity affiliate merged with and into ITG, with ITG continuing as the surviving corporation and as a privately-held Platinum Equity portfolio company. ITG’s common stock has ceased to be publicly traded, and former ITG stockholders will receive information from Continental Stock Transfer & Trust Company, the paying agent in the merger, on how to receive the cash consideration for their shares of ITG common stock, in the near future.
In order to complete the merger transaction, Platinum Equity acquired all of the debt and equity securities of the Company previously owned by entities managed by WL Ross & Co. LLC and its affiliates.
The merger transaction and related agreements were entered into following the approval of ITG’s Board of Directors, based upon the recommendation of an independent special committee, along with its independent legal and financial advisors, which negotiated the terms and conditions thereof.
Kenneth T. Kunberger, President & CEO of International Textile Group, continues in his role under the new ownership. “This is an exciting time for ITG,” said Kunberger. “We believe Platinum Equity and ITG’s goals and strategies are well aligned and provide a strong foundation on which to further leverage ITG’s performance innovations and brand heritage across our global markets. We look forward to many opportunities ahead.”
Additional information regarding the merger and related transactions will be contained in the Company’s Current Report on Form 8-K relating thereto, expected to be filed with the U.S. Securities and Exchange Commission on the date hereof.
I don’t think these are good news. These companies are experienced performers with top professionals, IP and facilities. I can speak about ITG and Carlisle particularly. The main issue is that an equity firm only cares about the short term. Hope platinum has the experience in their analysts ranks to make wise decisions.