Philadelphia, Pennsylvania - Plymouth Rubber and its subsidiary Brite-Line Technologies have both been acquired by the Chrysalis Capital Partners private equity fund.
The move follows approval by the Boston Bankruptcy courts of Plymouth's joint plan for reorganisation. To complete the transaction, Chrysalis provided new equity, arranged senior exit financing from Wells Fargo Business Credit, Inc. and negotiated consensual settlements with certain pre-petition creditors.
Plymouth Rubber is a leading designer and manufacturer of high quality PVC and rubber tapes for use in the automotive industry, as well as in other specialty applications, while Brite-Line designs and manufactures high-quality rubber reflective highway marking tapes and materials.
Plymouth Rubber has already relocated its US vinyl tape manufacturing operations to a joint venture operation in China, and plans to shift its US rubber tape manufacturing to a lower cost site in 2007. Manufacturing of vinyl tapes at Plymouth's Spanish operations and of reflective tapes at its Brite-Line subsidiary in Denver will continue.
Plymouth Rubber and Brite-Line filed for Chapter 11 protection in July 2005, due to disputes between their secured lenders and the Pension Benefit Guaranty Corporation. This uncertainty has been eliminated by the bankruptcy settlement, under which the company's Pension Plan has been terminated and its liabilities assumed by the PBGC, while the claims of the pre-petition secured lenders have been otherwise compromised or satisfied.
"We are very pleased to work with the Chrysalis team on this transaction," says Maurice Hamilburg, President and Chief Executive Officer of Plymouth Rubber, who is investing in the transaction alongside Chrysalis and will remain Chief Executive Officer of Plymouth Rubber. "We were initially impressed by their quick insights and decisiveness, coupled with their knowledge and experience in the complex bankruptcy procedures needed to address the company's financial issues. As the transaction continued, our confidence was increased by the speed at which Chrysalis engaged our company, negotiated agreements with the interested third-parties, and focused its efforts on devising plans for constructive operational change that can be implemented while maintaining full service to our customers."
"This transaction is a solid fit with our investment rationale," says Greg Segall, Managing Partner of Chrysalis. "We quickly recognised the strong underlying business at Plymouth Rubber and Brite-Line as well as the opportunity in partnering with its management team to take the company out of bankruptcy and pursue operational improvements. We look forward to working with management as they continue to execute on their business plan."
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Press release from Plymouth