By Diana Bowley - Bangor Daily News - GUILFORD — Atlanta-based Interface Corp. has signed a definitive agreement to sell InterfaceFabric and its three plants in Maine to an affiliate of Sun Capital Partners, a leading private investment firm, an official said Tuesday.
The $70 million sale affects all six Interface plants, including the former Guilford of Maine and Saulter plants in Guilford and a similar plant in Newport.
The company is a major producer of interior fabrics and upholstery products marketed under the brands InterfaceFabric and Tarratex.
Chris Richard, president and chief executive officer of Interface Fabrics Group Inc., said Tuesday there is no plan to close or consolidate the Maine plants.
"They are an excellent operation and are very profitable facilities," Richard said. "It's business as usual." The company has about 700 employees and no other changes are expected.
"We are still working to become a sustainable company in 2020 as [company founder] Ray Anderson initiated 13 years ago," Richard said.
As for the sale, Richard said it will help pay down debt and help leverage the carpet platform. "We also are excited to be a stand-alone company," Richard said. "Sun Capital will provide us the resources to fulfill our long-term strategies and financial goals."
Under terms of the agreement released in a prepared statement, Interface will receive approximately $63.5 million in cash proceeds at the closing of the transaction, with the potential for an additional $6.5 million in cash proceeds, subject to some performance measures over the subsequent six to 18 months.
Richard said a closing will be set once the company has filed all of the regulatory paperwork. He said the sale could be made final between next week and mid-August.
The fabrics division reported an operating loss of $27.3 million on revenue of $161.2 million in 2006 and had depreciation and amortization of $9.4 million, according to a company statement. These full-year 2006 results include the operations of Interface's former European fabrics business, which was sold in April 2006. The divested European fabrics business accounted for sales of $17.3 million and an operating loss (after a $20.7 million charge) of $19.6 million in 2006.
M. Steven Liff, a managing director of Sun Capital Partners, said in a news release: "We are excited about the opportunity for our affiliate to acquire Interface's fabrics division. We believe that the market is robust for commercial interiors and we see strong potential to increase the efficiencies within the fabrics division while leveraging its unique brands to enhance the division's future growth."
Sun Capital Partners is a private investment firm focused on leveraged buyouts, equity, debt and other investments in market-leading
|Back to News||Home||Print This Story|