Globe Manufacturing Signs Purchase and Sale Agreement

Globe Manufacturing Signs Purchase and Sale Agreement

FALL RIVER, Mass.— (BUSINESS WIRE) — Jan. 22, 2001 — Globe Manufacturing, a worldwide maker of Glospan (R) spandex, today announced that it has entered into a purchase and sale agreement for the sale of its assets to RadiciSpandex Corp. (“the Purchaser”), a subsidiary of the Radici Group.

Based in Italy, the Radici Group is a multi-billion dollar multinational concern employing 6,200 employees at 50 factories worldwide and is active in synthetic fiber, chemical, fabric, plastics, engineering, packaging and machinery products and services. Terms of the agreement were not disclosed.

Globe said that the Purchaser has indicated that it intends to continue Globe's operations after the sale and that it is interested in maintaining good relationships with customers and vendors in the best interests of business continuity. Radici Group has been in discussions with Globe regarding the purchase for many months and has performed an extensive review of Globe's business prior to committing to the agreement.

As previously announced, an involuntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code was filed on December 20, 2000 in Boston, Massachusetts by a group of holders of Globe's Senior Subordinated Notes due 2008. On January 12, 2001, the Massachusetts Bankruptcy Court dismissed the bankruptcy case. On January 13, 2001, the Company filed a voluntary petition under Chapter 11 in Alabama and Globe entered voluntary bankruptcy as a debtor-in-possession. On January 16, 2001, the Alabama Bankruptcy Court issued orders that, among other things, provide for a hearing on March 12, 2001, to consider approval of the purchase and sale agreement with the Purchaser.

Richard Heitmiller, chief executive officer of Globe Manufacturing, said, “We are extremely pleased with this purchase and sale agreement. Partnering with Radici Group provides an opportunity to create incredible synergies within existing markets, as well as to gain entry into new global ones and allow Globe's business to continue to grow with its customers and maintain its position as a leading producer of spandex fiber.“

Todd Snyder, managing director of Rothschild Inc., said, “After a very comprehensive analysis of the Company's operations and needs, as well as an analysis of potential partners in the marketplace, we believe this potential deal maximizes the value of Globe's operations and provides Globe's business with exciting new opportunities worldwide.“

Rothschild Inc. advised Globe in this transaction and assisted in identifying the Purchaser.

Established in 1945, Globe Manufacturing Corp. produces Glospan (R) and Cleerspan (R) Spandex Performance Fibers and is a premier worldwide spandex fiber supplier. Available in a range of deniers from 20 through 5040 and various packaging put-ups, Glospan (R) is distributed to over 40 countries through five major distribution channels. Globe is registered under the internationally recognized ISO 9000 standard as an ISO 9001 manufacturer.

This news release contains certain forward-looking statements concerning Globe's positioning for the future. The Company advises that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those stated or inferred. These could include, but are not limited to, the failure of Globe to maintain financial results or liquidity; the ability of the Company to close on a purchase and sale agreement; the uncertainties inherent in bankruptcy proceedings; sudden marketing changes in product pricing or the cost of raw materials; failure of the Company to successfully implement its value-added marketing strategy or other uncertainties inherent in forward-looking statements.

CONTACT: Globe Manufacturing, Kevin Cardullo, 508/674-3585 or Gavin Anderson & Co., Doug Morris, 212/515-1964

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