Cerberus buys busted fabric-maker for $107m

The New York distressed giant has agreed to take public Guilford Mills, which emerged from bankruptcy a year and a half ago.

New York-based Cerberus Capital Management today announced an agreement to buy Guilford Mills off the public market for a cash total of $107 million (€86 million).


The Greensboro, North Carolina maker of fabrics emerged from Chapter 11 bankruptcy less than 18 months ago.


Guilford’s board has approved the transaction, according to a press release. The company is led by president and chief executive officer John Emrich.


Cerberus has roughly $12 billion in funds and accounts under management.


A year ago, the firm acquired Fila Holding, an Italian manufacturer of footwear and apparel for sport and leisurewear, from Holding di Partecipazioni Industriali for $351 million.


In 2002, Cerberus joined Fortress Investment Group and JC Flowers in the acquisition of Conseco Finance from bankrupt insurance and lending giant Conseco, a Thomas H Lee Partners portfolio company that had received $500 million from the Boston buyout firm.