RUTHERFORD COLLEGE -- An Italian company has finalized its acquisition of a company in Rutherford College.
This week, Aquafil S.p.A. finalized it acquiring 100 percent of O’Mara Inc . for equal to $40.5 million, according to a release from Aquafil. The deal was completed through the Aquafil Group’s U.S. subsidiary, Aquafil USA Inc.
Aquafil was founded in 1965 and is one of the main producers of nylon in Italy and worldwide, according to information from the company. The Group has locations in eight countries and in three different continents, with more than 2,800 employees at 16 production sites located in Italy, Germany, Scotland, Slovenia, Croatia, United States, Thailand and China.
Aquafil S.p.A. funded the acquisition of O’Mara through a privately placed bond subscribed by Pricoa Capital Group, a member of the US insurance group Prudential Financial Inc., for a total amount of €40 million, with a term of 10 years, including an initial interest-only period of three years, and an annual fixed rate of 1.87 percent, according to a release from Aquafil.
The O’Mara acquisition will provide access to a broader product range, thereby driving further development of the U . S . market in the sectors of athletic apparel, hosiery, fashion and accessories, according to the Aquafil release.
O’Mara Incorporated — founded in 1970 — makes textured polyester, nylon and polypropylene in solution-dyed colors and naturals for a broad range of industries at its facility based in Rutherford College, according to information on its website. Its Rutherford College facility is located at 160 Fashion Ave. In 2018, O’Mara reported a turnover of $40.1 million, with margins in line with those of Aquafil Group, according to a release from Aquafil.
As a result of the production activity in the US, the Aquafil Group will benefit also from the trade agreements between the U . S . federal government and certain Central and South American countries (CAFTA), which allow for exemptions from U . S . tariffs on apparel produced in the latter countries using yarns of US origin, the release said.
Aquafil has innovative and sustainable process able to create new products from waste and give life to an endless cycle, according to the release. The nylon waste is collected in locations all over the world and includes industrial waste but also products — such as fishing nets and rugs — that have reached the end of their useful life. Such waste is processed to obtain a raw material — caprolactam — with the same chemical and performance characteristics as those from fossil sources, the release said. The polymers produced from ECONYL caprolactam are distributed to the Group’s production plants, where they are transformed into yarn for carpet flooring and clothing.