NEW YORK — A group of Mexican investors have completed the previously announced acquisition of Kayser-Roth Corp. from Collins & Aikman Group. The principals of the purchasing group are the Mexican hosiery firm Grupo Synkro de SA de CV and a group of individual investors, who have formed Legwear Acquisition Corp. for the purchase. The combination of Synkro and Kayser-Roth creates the world’s second-largest hosiery producer with sales of $600 million.
Kayser-Roth, based in Greensboro, N.C., will continue to be operated independently under Gary Mulloch, president of the company’s legwear division, who has been appointed chief operating officer. Robert L. Seelert, Kayser-Roth’s president and chief executive officer, who was to continue with the firm according to earlier announcements, has resigned.
Contacted at his home in Greensboro, Seelert said he had set no further plans. Before joining Kayser-Roth in 1991, he spent 23 years at General Foods. He said he planned to return to his home in New Canaan, Conn., and “relax through the summer.”
The price for Kayser-Roth was about $170 million, plus a warrant for the seller to purchase 10 percent of the equity of Legwear Acquisition within three years. Legwear can repurchase the warrant for $10 million. About $66 million of the cash proceeds were used to repay outstanding bank debt of Kayser-Roth, with the remainder going toward general corporate purposes.