Cone Denim Parent Company Acquired by Beverly Hills Private-Equity Firm
International Textile Group, a diversified fabric maker that includes Cone Denim and Burlington Industries, has been acquired by private-equity firm Platinum Equity, for an undisclosed price.
In order to complete the merger transaction, Platinum Equity, headquartered in Beverly Hills, Calif., acquired all of the debt and equity securities of ITG, previously owned by entities managed by W.L. Ross & Co. LLC and its affiliates.
Platinum Equity was launched in 1995 by Tom Gores, whose brother, Alex Gores, started global investment company The Gores Group, also headquartered in Beverly Hills.
International Textile Group’s stock was traded in the over-the-counter market. Its common stock will cease 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.
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.
Under the new ownership, Kenneth T. Kunberger, International Textile Group’s president and chief executive, will continue in his role. "This is an exciting time for ITG," Kunberger said. "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."
ITG’s Cone Denim mills are located in Mexico, China and near its headquarters in Greensboro, N.C. ITG’s other businesses are Safety Components and Carlisle Finishing. It employs 4,800 workers around the world.