Milliken acquiring textile company Polartec

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Spartanburg-based Milliken & Co. has signed a definitive agreement to acquire Andover, Mass.-based textile company Polartec LLC, from Versa Capital Management LLC.

The acquisition is expected to close this month. Financial terms of the transaction were not disclosed.

“Polartec brings a wealth of new and respected outdoor textile expertise to complement Milliken’s strengths,” Halsey Cook, president and CEO of Milliken & Co., said in a news release. “The strategic acquisition broadens our textile capabilities with a product offering to now include fleece and soft-shell outerwear, among others, allowing us to grow in new and exciting spaces.”

Polartec is a global brand “known for its innovative performance textiles for outdoor and military apparel,” the release said. The company has a portfolio of fabric technologies for outdoor apparel, from performance-driven and consumer-focused textiles, to flame-resistant, workwear and military-grade fabrics.

“With more than 150 years of textile innovation, Milliken is the best possible ‘natural owner’ of a brand with Polartec's pedigree. I look forward to supporting the integration,” Gary Smith, Polartec CEO, said in the release. "I’m grateful to Versa Capital Management for their support in realizing Polartec’s full potential, and I'm extremely proud of the global Polartec team for their dedication and hard work that put the company in the position it is in today.”

Versa Capital Management acquired the assets of the former Malden Mills, in Lawrence, Mass., in 2007 through the then 101-year-old textile manufacturer’s third reorganization, according to the release. The business was renamed Polartec.

Versa and Polartec were advised by Lazard Middle Market and Sullivan & Cromwell LLP. Milliken & Co. was represented by Jones Day. The transaction is subject to customary closing conditions, the release said.

Milliken announced earlier this month it had acquired Andover Healthcare, a manufacturer of cohesive bandages and compression systems used in health care, animal health care and sports medicine.