POLYSINDO TO BUY 23% OF DYERSBURG
DYERSBURG, Tenn. — Dyersburg Corp. said last week that Polysindo Hong Kong Ltd., an affiliate of a major Indonesian textile complex, has agreed to purchase three million shares, or about 23 percent of the outstanding stock of Dyersburg.
Polysindo is an affiliate of PT Texmaco Jaya, a diversified international corporation. Texmaco, Indonesia’s biggest textile group, manufactures polyester, apparel and textile machinery.
The group operates 12 manufacturing units worldwide and employs about 20,000 people.
According to Dyersburg, Texmaco said it is interested in owning a majority of the common stock within 18 months of closing this initial transaction.
However, if Texmaco does not gain 50 percent within 18 months, it will be prohibited under the agreement from acquiring additional shares.
The stock will be purchased for about $7.65 in cash from a group that acquired control of Dyersburg in 1986.
The deal is scheduled to be completed by April 30 in a private transaction. Dyersburg stock closed Monday at 7 1/4, down 1/8 on the New York Stock Exchange.
Texmaco is expected to nominate three people to Dyersburg’s board as replacements for John D. Howard, Julius Koppelman and Daniel W. Miller, who are associated with the selling shareholders.
T. Eugene McBride, chairman and chief executive officer of Dyersburg, said in a statement, “Texmaco’s extensive experience with international trade can accelerate Dyersburg’s current initiatives toward building a worldwide marketing base.”
McBride added, “This should have little effect on the employment or operating levels at our current facilities located in the United States.”
Dyersburg manufactures and markets fleece, jersey and stretch knit fabrics used for activewear and sportswear. It has about 13.1 million shares outstanding.
In its most recent quarter ended Jan. 4, Dyersburg reported sales of $38.8 million and earnings of $684,000, or 5 cents a share.