Arnold & Porter Kaye Scholer Advises Ultrafabrics on Sale to Daiichi Kasei
Arnold & Porter Kaye Scholer advised Ultrafabrics LLC (Ultrafabrics), a leading provider of high-performance polyurethane fabrics, on the sale of 84.21 percent of its equity to Daiichi Kasei Co. Ltd. (Daiichi Kasei), a Japan-based polyurethane manufacturer listed on the Tokyo Stock Exchange under DKK. Under the terms of the deal, which was announced January 23, 2017, and closed in early March, Daiichi Kasei bought the remaining 84.21 percent of Ultrafabrics, which it had not previously owned, for approximately $126 million.
Founded in 1999 and based in Tarrytown, New York, Ultrafabrics is a pioneer in high-performance polyurethane fabrics. The company has a track record of first-to-market innovations driven by state-of-the-art R&D capabilities to manufacture and distribute superior quality products for its original equipment manufacturer (OEM) customers. In addition to the automotive industry, Ultrafabrics' end-markets include furniture, aviation, healthcare, and marine uses.
The majority owners of Ultrafabrics reinvested a portion of their proceeds in convertible preferred stock of Daiichi Kasei and will join the company's board of directors.
Corporate and Finance attorneys Mel Cherney, Marci Settle, and Maria Reda led the transaction. Also supporting this transaction were partners Laurie Abramowitz and Jeffrey London, counsel Peter Danias, and associate Connie Ericson.