Singer Sells Sewing Business
Singer NV, based in the Netherlands Antilles, has agreed to sell its sewing business and trademark for $125 million in cash and debt to an investment group managed by Mt. Kisco, N.Y.–based venture capitalist group Kohlberg & Co. LLC.
KSIN Holdings Ltd., a holding company financed by Kohlberg, will assume Singer’s operations in the United States, Canada, China and the Caribbean, as well as several others in Europe and South America. The deal also includes Singer’s manufacturing facilities in Brazil and China. The sewing business accounted for 51 percent of Singer’s 2003 revenue and 57 percent of its operating earnings.
When the deal closes some time during the third quarter, Singer will receive $71 million in cash, which will help the company repay the corporate debt that resulted from its restructuring in 2000, when it filed Chapter 11 bankruptcy. The company emerged later from bankruptcy but was left with a number of obligations, said company officials. The proceeds from the sale will help the company build Asian business and explore new business opportunities, said Singer President Stephen Goodman.
Singer will continue to own 57 percent of Singer Asia and all of Singer Jamaica, as well as its retail and trading businesses in Asia. The retail businesses will continue to have the right to use the Singer brand in these markets. —R.M.
