Fab explores possibility of sale
December 17, 2001,
It's rare that a company puts itself up for sale because it has too much money.
In an announcement earlier this month, the producer of warp and circular knit fabrics, raschel laces and laminated fabrics is looking to the sale of the company as one of a number of possibilities "to maximize shareholder value." The strategy to sell the company would be as part of a plan of liquidation, enabling it to distribute its large cash position.
"The state of the industry has significantly affected our revenues and ability to predict the course of the business," said Samson Bitensky, chairman and ceo. Fab had been accumulating the money over a number of years to enable it to be in a position to make acquisitions.
Fab, as of Sept. 1, had $140.7 million in assets, with $88.3 million in cash and securities available for sale. Liabilities for that period were $16.9 million.
The company, Bitensky added, "will continue to operate the business as normal, including servicing our customers, maintaining our supplier relationships, seeking profitability, and [we] expect that any purchaser of the business will do the same."
Shareholders will be asked to approve a plan of liquidation at the annual shareholders meeting in March 2002.