GUILFORD MILLS, INC.

GUILFORD MILLS, INC.

Previous company name

Name change date

Company Overview
Guilford Mills Inc., with head office located Greensboro, North Carolina, United States, produces textiles used in the apparel, automotive, and home furnishings industries. The company knits, dyes, and finishes nylon, acetate, and polyester yarn and sells finished fabrics. Its fabrics are used in lingerie, sportswear, loungewear, swimwear, children’s sleepwear, bed sheets, mattress ticking, bedspreads, upholstery, and draperies. In the automotive industry, Guilford fabrics are used for automobile roof interiors and seat covers. The company is the only United States automotive textile company with manufacturing facilities abroad. The company has production plants in the United Kingdom and shares ownership of Mexico’s largest warp knitting company. Guilford Mills was founded in 1946 in Greensboro, North Carolina when James Hornaday set up a shop in a garage with half a dozen employees and six warp-knit machines to produce synthetic fabrics for ladies’ lingerie. The company’s first permanent knitting plant was built four years later in Greensboro, and in 1961, the company started its first dyeing and finishing plant.
Guilford Mills is the leading producer in the United States of warp and flat knit fabric. The company’s automotive business unit also showed, with worldwide growth in automotive and van interiors and residential upholstery, is a technological and design innovator, selling its body cloth and headliner fabrics to automakers in the United States, Europe, and Japan. Some of the company’s customers include Toyota, Nissan, and Honda, General Motors and Ford Motors.
Business Summary
Guilford Mills, Inc. is primarily a supplier of automotive textile products. The Company participates in the following segments: Automotive, Industrial and Apparel. Fabrics produced in the Automotive segment are sold to suppliers of original equipment manufacturers. Guilford is a producer and supplier of bodycloth and headliner fabric in the United States and Europe. Fabrics produced in the Industrial segment are sold for use in window fashions and in a range of specialty applications, including geotextiles, medical and water filtration systems. The Company’s fiber operation manufactures and supplies fibers internally and to other external textile manufacturers. The Apparel segment fabrics are used in the production of team sportswear, caps and gowns and performance activewear. In April 2004, the Company was acquired by GMI Merger Corporation, an affiliate of Cerberus Capital Management, an investment firm based in New York.
Description and history
Guilford Mills, Inc., incorporated in August 1971, is primarily a supplier of automotive textile products. The Company participates in the following segments: Automotive, Industrial and Apparel. Fabrics produced in the Automotive segment are sold to suppliers of original equipment manufacturers (OEMs). These fabrics are then used in the production of seats and headliners and other interior components of passenger cars, sports utility vehicles, conversion vans and light and heavy trucks. Guilford is a producer and supplier of bodycloth and headliner fabric in the United States and Europe. Fabrics produced in the Industrial segment are sold for use in window fashions and in a range of specialty applications, including geotextiles, medical and water filtration systems. The Company’s fiber operation manufactures and supplies fibers internally and to other external textile manufacturers. The Apparel segment fabrics are used in the production of team sportswear, caps and gowns and performance activewear. During the fiscal year ended September 30, 2003 (fiscal 2003), two of its automotive customers, Johnson Controls, Inc. and Lear Corporation, each of which are suppliers to OEMs, accounted for 20.0% and 10.8% of the Company’s sales, respectively. In April 2004, the Company was acquired by GMI Merger Corporation, an affiliate of Cerberus Capital Management, an investment firm based in New York.

The Company previously participated in the Direct-to-Retail Home Fashions market and produced window curtains, knit and/or lace comforters, sheets, shower curtains, pillowcases and bedskirts sold directly to department stores, discount retailers and catalog houses. Guilford also produced upholstery fabrics for use in office and residential furniture. The Company no longer manufactures or distributes products in this line of business. Until the first quarter of the 2004 fiscal year, Guilford maintained Automotive and Apparel segment operations in Mexico City, Mexico through certain majority owned Mexican subsidiaries (collectively the American Textil Group). In December 2003, the Company sold all of its capital stock in the American Textil Group to a company controlled by the general manager of the American Textil Group and by a person who had been a minority stockholder of a certain American Textil Group company.

On March 5, 2002, Guilford reached an agreement in principle with its senior lenders on the restructuring of its senior indebtedness. To conclude the restructuring as quickly as possible, the Company and its domestic subsidiaries (collectively the Debtors) filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York on March 13, 2002 (the Filing Date). The Chapter 11 cases were jointly administered under case no. 02-40667 (BRL) and, pursuant to the Bankruptcy Court’s approval of the Plan, were substantively consolidated for the purpose of consummating the Plan. During the period from the Filing Date until October 4, 2002 (the Effective Date), the Debtors operated their business as debtors-in-possession under Chapter 11 of the Bankruptcy Code. The Company’s non-United States subsidiaries did not file voluntary petitions and were, therefore, not Debtors.

As a result of these Chapter 11 filings, actions to collect pre-petition indebtedness were stayed. In addition, under the Bankruptcy Code, the Debtors had the right to assume or reject executory contracts, including real estate leases, employment contracts, personal property leases, service contracts and other unexpired, executory pre-petition contracts, subject to Bankruptcy Court approval. Parties affected by these rejections were permitted to file claims with the Bankruptcy Court in accordance with the Bankruptcy Code. The Company’s amended joint plan of reorganization dated August 15, 2002, was confirmed by the Bankruptcy Court on September 20, 2002, and on October 4, 2002, the Debtors emerged from their bankruptcy proceedings.

Founded in Greensboro, North Carolina when James Hornaday set up a shop in a garage with half a dozen employees and six warp-knit machines to produce synthetic fabrics for ladies’ lingerie

Business Line
Produces textiles used in the apparel, automotive, and home furnishings industries
Subsidiary
GOLD MILLS, INC
Advisor
GRANT THORNTON INTERNATIONAL
IPO date

US SIC Code
2259
Company Address
6001, West Market Street

City province or state postal code
27409, GREENSBORO, NC
Phone: +1 336 316 4000
Fax: +1 336 316 4059
Country address: UNITED STATES OF AMERICA
Website url: www.guilfordmills.com