Foamex Intl. Board to Continue to Evaluate Revised Buyout Proposal
3 November 1998
Foamex International Board to Continue to Evaluate Revised Buyout Proposal of $12.00 Per Share
LINWOOD, Pa.--Nov. 2, 1998--Tender Offers Extended
Foamex International Inc. announced that the Board of Directors met today and did not reach a decision regarding, but continues to evaluate, the revised proposal of Trace International Holdings, Inc. to purchase all of the outstanding shares of Foamex not owned by Trace or its subsidiaries for $12.00 per share in cash.
The Special Committee advised the Board that it recommends against the acceptance of the Trace proposal by the Board. The Board has, however, determined to continue to negotiate the terms of the revised proposal with Trace. The Board has scheduled a meeting for November 4, 1998 to give further consideration to the revised proposal.
On October 16, 1998, Trace notified the Foamex Board that due to a deterioration in conditions in worldwide financial markets, it was unable to obtain debt financing contemplated for its original proposal of $18.75 per share.
On October 19, 1998 Trace informed the Foamex Board that it expects to arrange for the $800 million necessary for the financing of its revised proposal through the Bank of Nova Scotia. The Bank of Nova Scotia has committed to provide one-half of the financing and has agreed to use its commercially reasonable best efforts to obtain the remainder of the financing required. Trace has advised the Board that it expects to obtain commitments for the balance of the financing by November 5, 1998, although there can be no assurance that such commitments will be obtained.
Trace and its subsidiaries beneficially own approximately 11,525,000 shares of Foamex common stock, or approximately 46% of the outstanding common stock. Foamex International Inc. has 25,014,823 shares of common stock outstanding.
Pending the Foamex Board's determination of the appropriate action to be taken in response to Trace's revised proposal, Foamex L.P., an indirect wholly owned subsidiary of the Company, has extended the expiration date of the previously announced tender offers for two issues of public debt from Tuesday, November 3, 1998 to Monday, November 9, 1998. Following such date, the tender offers may be amended, extended or terminated.
Foamex manufactures and markets flexible polyurethane and advanced polymer foam products in North America. Foamex operates under four business units: Foam Products, which includes consumer, cushioning, furniture and bedding products; Carpet Cushion Products; Automotive Products; and Technical Products.
For more information about Foamex International, visit its web site at http://www.foamex.com
Editors note: Foamex's company logo and executive photos can be retrieved in digital form by media without any charge from Wieck Photo DataBase (972) 392-0888.