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SNEWS confirms: Polartec being shopped by equity owners

Several financial newswires, including Bloomberg, reported on Oct. 27 that Versa Capital Management was shopping Polartec -- three years after it acquired the company out of bankruptcy proceedings in March 2007. SNEWS has the inside scoop.


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Several financial newswires, including Bloomberg, reported on Oct. 27 that Versa Capital Management was shopping Polartec — three years after it acquired the company out of bankruptcy proceedings in March 2007 (click here to read the Mar. 14, 2007, SNEWS® story).

Versa Capital Management is a Philadelphia-based, private-equity firm formerly known as Chrysalis Capital Partners. Reports put the asking price at $200 million. Versa paid $44 million for Polartec in 2007.

Insiders confirmed to SNEWS that a suitable buyer for Polartec is being explored, triggered by serious inquiries to acquire the company earlier this year. It remains business as normal for Polartec, we were told.

The news that Polartec is now being shopped should surprise no one, analysts familiar with private equity deals told SNEWS, saying it is quite typical for an investment company to seek a sale and return on investment for its partners within a three- to five-year window following an acquisition.

–Michael Hodgson