Robbins Umeda LLP Announces an Investigation of the Acquisition of Polymer Group, Inc. by an Affiliate of Blackstone Capital Partners V L.P.
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the Board of Directors (“Board”) of Polymer Group, Inc. (“Polymer Group” or the “Company”) (OTC: POLGA/POLGB) in connection with their efforts to sell Polymer Group to an affiliate of Blackstone Capital Partners V L.P. (“Blackstone”). If the transaction is completed, Polymer Group shareholders will receive $18.16 in cash for each share of Polymer Group common stock they hold. A portion of the aggregate purchase consideration, approximately $2.91 per share, will be deposited in an escrow account at closing and will be available to cover potential tax liabilities. As a result of the reserve of the escrow funds, each holder of outstanding shares of Polymer Group common stock will be entitled to receive approximately $15.25 at closing, and will be entitled to receive its ratable share of any additional amounts if and when released from the escrow fund in accordance with the definitive agreement. The transaction is expected to close prior to the end of the first quarter of 2011.
The firm’s investigation concerns whether Polymer Group’s Board undertook a fair process to obtain fair consideration for all shareholders of Polymer Group. Specifically, our investigation concerns whether members of the Company’s Board breached their fiduciary duties to Polymer Group’s shareholders by failing to adequately shop the Company before entering into the transaction with the affiliate of Blackstone. Even assuming shareholders receive the entire amount withheld in the escrow funds, Blackstone’s offer represents a 19% discount to the Company’s stock price on September 30, 2010, which closed at $22.50.
If you are a shareholder of Polymer Group, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at firstname.lastname@example.org.