Springs Industries Gets a Buyout Offer

Springs Industries Inc., a maker of linens under such brands as Springmaid, said it received a proposal from the Close family to take the company private in a deal worth more than $787.6 million, or about $44 a share. The Close family, descendants of Springs’ founders, already own about 41% of Springs. The news sent Springs shares up $7.72, or 21%, to close at $43.82 on the NYSE. The deal would leave the Close family and Heartland Industrial Partners, a private equity firm based in Greenwich, Conn., in control of the company. Heartland would provide $225 million, and there would be other unspecified borrowings from J.P. Morgan Chase. Directors will meet Thursday to consider the offer, which would leave the Close family with 55% of Springs and Heartland with 45%. The sluggish retail environment has caused mass merchants to adjust inventories and compelled textile mills to curtail production. Heartland was formed by former Reagan administration Budget Director David A. Stockman.