Albany International Corp. has agreed to sell its PrimaLoft Products business to PrimaLoft, Inc., a company newly formed by the current PrimaLoft management team, in partnership with Prudential Capital Partners L.P., for $38 million, subject to customary post-closing adjustments.
Under the terms of the agreement, the Buyer will acquire all assets related to the PrimaLoft business. The company’s board of directors unanimously approved the terms of the agreement.
The transaction is subject to customary closing conditions and is expected to close by the end of the second quarter of 2012.
The company intends to use the net proceeds from the transaction to continue to strengthen the balance sheet. Additional details will be included in the second-quarter earnings release.
“This transaction, following the sale of Albany Door Systems and the integration of Paper Machine Clothing and Engineered Fabrics earlier this year, completes our efforts to simplify our ‘cash and grow’ corporate strategy and structure,” said Albany International President and CEO Joseph G. Morone. “The combination of the cash generation potential of Machine Clothing, the growth potential of Albany Engineered Composites, and a strong balance sheet leaves Albany well positioned for both the near and long term. For our friends and colleagues at PrimaLoft Products, who have so successfully grown and positioned PrimaLoft as a leading global brand, they will have the opportunity to continue to grow with the support of Prudential, while building on the strong foundation they established as a part of Albany International over the last 20+ years.”
“We have a long-standing relationship with Albany International and know the PrimaLoft business well,” says Eric Seward, vice president, Prudential Capital Group. “PrimaLoft has a tremendous reputation in the marketplace, and we are thrilled to back the management team in this transaction.”
