Private Placements, Capital Formation,
Restructuring & Recapitalizations



Hobbs Bonded Fibers Management Buyout ~ September 2015

Hobbs Bonded Fibers Management Buyout

Hobbs Bonded Fibers Inc. specializes in developing and manufacturing specialty nonwoven products for industrial and consumer applications, with a focus on the Automotive and Quilt Batting markets. Hobbs operates seven manufacturing lines producing over 32 million pounds of synthetic and natural fiber annually. Raw staple fiber is delivered to Hobbs’ facilities in compressed bale form, consisting of polyester, polypropelene, cotton and wool. Hobbs uses Carded and Airlaid manufacturing processes in combination with proprietary bonding techniques, including needle punching, resin bonding and thermoforming, to convert the raw fiber into finished rolled sheets that are sold to industrial and retail customers. Automotive customers include Tier I and Tier II OEM suppliers that use the finished fiber to manufacture end products for acoustic insulation, including dash liners, trunk liners, wheel wells and undershields. In the Craft and Quilting market, Hobbs is a leading supplier of quilt batting, pillow inserts and fiberfill, in both packaged and roll forms, producing in excess of 50% of all quilt batting content in the United States. Hobbs is headquartered in Waco, Texas, and has facilities in Waco and Trenton, Tennessee.

Taglich Brothers provided the majority of the $10.0 million in equity for the transaction. The transaction’s sponsor, Taglich Private Equity, arranged for a $7 million revolving credit facility, an $11.5 million senior term loan and a $2.0 million senior secured capital expenditure term loan with Fifth Third Bank and a $6.5 million senior subordinated loan with Ironwood Mezzanine Fund III.

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