Elevate Textiles, the fabric manufacturer servicing the automotive, apparel, interior furnishing, and industrial industries owned by Platinum Equity, reached an out-of-court restructuring deal in which its lenders will take control of the company.
The Charlotte, NC-based company’s portfolio includes American & Efird, Burlington, Cone Denim, Gütermann, and Safety Components.
Elevate Textiles said in a statement that the recapitalization would infuse $100 million of new capital into the business, reducing the company’s debt load to $384 million from $778 million, extending the company’s debt maturities until 2027, including the existing ABL facility, and execute the change in ownership.
Elevate Textiles will be owned by a consortium of global investment firms, who will soon appoint a new Board of Directors.
While there is no anticipated impact on the company’s global operations, these actions strengthen Elevate Textiles’ capital structure and position it to increase investments in its employees, operations and growth initiatives.
“We are pleased with the outcome of this recapitalization process which provides an improved balance sheet and reduced leverage to align with the strength and capabilities of our business and brands. We appreciate the support of our financial stakeholders who have demonstrated their confidence in Elevate, our business plan, and our future,” said Sim Skinner, president and CEO of Elevate. “We look forward to directing our focus on delivering the high-quality service and premium products our customers have come to trust and depend on.”
Representatives from Elevate’s new shareholders collectively added, “Elevate’s leadership team, skilled employees, high-quality products, and loyal customers make us confident that the company will have continued success. We are excited to be part of the company’s future and look forward to supporting and partnering with Elevate as an industry leader for years to come.”