R2G, a family office based in Prague, Czech Republic which owns majority interest in PEGAS NONWOVENS a.s., and First Quality Enterprises, Inc. today announced that the two companies have entered into a definitive agreement under which R2G will acquire 100% of First Quality’s nonwovens operations in the United States and China. The transaction, which is subject to customary closing conditions, is expected to be completed early in the third calendar quarter of 2018.
R2G’s nonwovens business Pegas Nonwovens a.s. is a leading producer of nonwoven textiles with operations in Europe and Africa. The acquired operations will continue, post transaction, to supply nonwovens to First Quality’s U.S. absorbent hygiene division; which manufactures premium infant care, adult incontinence, and feminine hygiene products for the retail and health care markets. This strategic acquisition will expand R2G’s presence into North America and Asia and will act as a fantastic platform for growth in these two important markets.
Michal Smrek, Chief Executive Officer of R2G said, “We believe strongly in the nonwovens business. This transaction will enable us and our group companies to support our global customers across four continents. Post transaction, we will have state-of-the-art production facilities and unrivalled know-how and R&D expertise to ensure that our customers benefit from the premium products we offer and the joint innovation and synergies that this combination will bring. When we acquired PEGAS, we said that this was the first step to building a global platform. This transaction is the second step and we look forward to now investing into our global platform and the people that have made the production companies a success.”
Jim Dodge, Chief Financial Officer of First Quality Enterprises said, “In the past 21 years, we have built First Quality Nonwovens into a global leader in the nonwovens industry through strategic investments, strong product development, and differentiation; with full commitment to our workforce, customers, and our communities in Hazleton, Pennsylvania and Wuxi, China. We are very pleased to pass along this legacy to a company which shares our principles and values. While it is extremely difficult to part with our nonwovens division and the fantastic team members that work there, we are pleased that, following the completion of the transaction, they will be part of the R2G family of nonwovens companies with similar core values as the First Quality Group.”