RADICI BIDS FOR GLOBE MFG.
Byline: David Grant Caplan
NEW YORK — RadiciSpandex Corp., a subsidiary of the Italian multinational firm The Radici Group, has made an offer to buy the assets of troubled spandex maker Globe Manufacturing Corp.
A spokeswoman in Italy for The Radici Group last week said she was unable to disclose the terms of the proposed deal.
The offer still needs to be approved by a U.S. Bankruptcy Court judge in Alabama, where Globe in January filed a voluntary petition for Chapter 11 bankruptcy court protection.
As reported, in December the Fall River, Mass.-based company was forced into bankruptcy court in Boston by its creditors. That filing was dismissed.
On Jan. 16 a judge in Tuscaloosa, Ala., with the U.S. Bankruptcy Court, set a hearing for Mar. 12 to consider the approval of the sale of Globe to the Radici Group.
If the sale is not approved, it is possible that another major spandex maker could put in a bid for the company.
Bill Girrier, Globe’s assistant vice president of marketing and business development, said the firm is “looking toward the month of March or some time thereabouts to be emerging from bankruptcy as an entity owned by a new owner, potentially the Radici Group.”
He added that Globe — which recently said it plans to cut 130 manufacturing and administrative jobs — will “go forward untethered by past credit issues” if the deal is approved.
While Girrier expects the sale will eventually go ahead, he cautioned “you never know what turn in the rut could bring up one thing that delays it.”
Although Girrier said Globe “hasn’t been approached by the Radici Group as far as what their long-range strategic plan is,” he expects little to change at Globe if the deal goes through.
Girrier said the 56-year-old company had been “dealing with a lot of potential strategic buyers over time,” but the similarities between Globe and Radici strengthened the multinational firm’s offer.
“They’ve been talking with us for awhile — it didn’t come out of the blue,” he said. “They’ve got some real obvious synergy and the fact that they manufacture fibers and that they’re in the same types of markets that we are in, is really good for us.”
The Radici Group, headquartered in the northern Italian city of Bergamo, operates several subsidiaries that manufacture fibers, chemicals, textiles, plastics and machinery.
Girrier said Radici’s diverse and expansive activities mesh well with Globe’s desire to expand its global presence even further.
“Although we’ve grown over the years, it would be very nice to be associated with a multibillion-dollar company that has many other diverse markets and products.”
Girrier said Globe’s executives have no qualms about foreign ownership of the company.
“We’re global as is,” he said. “We sell overseas all of the time and we have foreign agents representing us in 35 countries, so that aspect I don’t think really matters so much.”