MatlinPatterson puts Polymer Group on the block

Private equity firm MatlinPatterson is trying to sell Polymer Group, a non-woven materials maker in which it is the largest shareholder, according to sources familiar with the matter.

The Blackstone Group is advising on the sale, the sources said, and the focus has been primarily on attracting private equity firms as bidders, two of those sources said.

A number of private equity firms have considered the asset, but are not pursuing it, sources said. However, at least one private equity bidder remains, one source said.

MatlinPatterson owns 65% of the company, according to Reuters data, picking up its controlling stake when Polymer emerged from bankruptcy in 2003. It has a market capitalization of about $350 million, according to Reuters.

Polymer Group makes non-woven fabrics used in diapers, bandages, food packaging and other products.

A spokesman for Polymer Group said by email: “Our company policy is to not comment on speculative rumors”.

MatlinPatterson and Blackstone declined comment. —Megan Davies and Michael Erman, Reuters