Principal Shareholders Considering Partial Placement of Shares in Collins & Aikman Corporation
29 November 2000
Principal Shareholders Considering Partial Placement of Shares in Collins & Aikman Corporation
TROY, Mich.--Nov. 29, 2000--Collins & Aikman Corporation today announced that Blackstone Capital Partners, L.P., and Wasserstein Perella Partners L.P., are considering alternatives with regard to their equity investment in the Company, potentially including a negotiated placement of a portion of their shares.Collins & Aikman Chairman and CEO, Thomas E. Evans, stated, "We have been working closely with our two largest shareholders in efforts to evaluate alternatives with respect to their investment in our Company. This could potentially include finding a new investor who is interested in joining with Collins & Aikman and its principal shareholders to further grow the Company and build long-term value. Collins & Aikman may also consider selling primary shares to a new investor in an effort to strengthen the strategic and financial position of the Company."
Blackstone and Wasserstein stated that they continue to believe in the long-term prospects of the Company and expect to retain a significant shareholding in Collins & Aikman. There is no assurance that any transaction involving a sale of shares by either shareholder or the Company will take place.
Collins & Aikman Corporation , is the global leader in automotive floor and acoustic systems and a leading supplier of automotive fabric, interior trim, and convertible top systems. The Company's operations span the globe with 63 facilities and more than 15,000 employees in 13 countries who are committed to achieving total excellence. Collins & Aikman's high-quality products combine industry-leading design and styling capabilities, superior manufacturing capabilities and the industry's most effective NVH "quiet" technologies. For more information about Collins & Aikman, visit the Company's web site at www.collinsaikman.com.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to general economic conditions in the markets in which Collins & Aikman operates, fluctuations in the production of vehicles for which the Company is a supplier, changes in the popularity of particular car models or particular interior trim packages, the loss of programs on particular car models, labor disputes involving the Company or its significant customers, changes in consumer preferences, dependence on significant automotive customers, the level of competition in the automotive supply industry, pricing pressure from automotive customers, the substantial leverage of the Company and its subsidiaries, limitations imposed by the Company's debt facilities, charges made in connection with the integration of operations acquired by the Company, the implementation of the reorganization plan, risks associated with conducting business in foreign countries and other risks detailed from time-to-time in the Company's Securities and Exchange Commission filings including without limitation, in Items 1 and 7 of the Company's Annual Report on Form 10-K for the year-ended December 25, 1999, and Item 1 in the Company's Quarterly Reports on Form 10-Q for the periods ended April 1, 2000, July 1, 2000 and September 30, 2000.