GREENVILLE, S.C. (March 22, 1:15 p.m. ET) — JPS Industries Inc. has rejected a conditional, unsolicited offer from Steel Partners Holdings to acquire the company.
In September 2011, Steel Partners announced that it had expressed willingness to purchase Greenville-headquartered JPS. The company formed a special committee to assess the offer.
“After extensive discussions with Steel Partners and review with their advisors, the special committee determined and the board of directors unanimously agreed that the offer is inadequate and not in the best interest of our shareholders,” said JPS CEO Michael Fulbright in the company's end of year report.
JPS said 16 March that it has now appointed Houlihan Lokey to explore strategic alternatives for the company, in order to maximize value for all shareholders.
JPS made the announcements in its end-of-year report. For 2011, the company posted sales of $190.3 million, an increase of 1.9 percent. JPS reported net loss of $0.9 million, down from net income of $3.2 million in 2010. Excluding the effects of litigation in 2011, operating income was $11.1 million, an increase of 5.7 percent. Earnings (EBITDA) for 2011 were up 8.2 percent at $22.4 million.
JPS makes extruded urethane products under the name Stevens Urethane, as well as ethylene vinyl acetate film and sheet, and mechanically formed glass and aramid substrate materials for speciality applications.