SC 13D 1 kl12030_schd13d.txt SCHEDULE 13D UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- SCHEDULE 13D (Rule 13d-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) Paragon Trade Brands, Inc. (Name of Issuer) Common Stock, $.01 par value (Title of Class of Securities) 69912K206 (CUSIP Number) Mark H. Swartz c/o Tyco International (US) Inc. One Tyco Park Exeter, New Hampshire 03833 (603) 778-9700 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) December 17, 2001 (Date of Event Which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box: |_| (Continued on following pages) (Page 1 of 14 Pages) -------------------------------------------------------------------------------- CUSIP No. 69912K206 13D Page 2 of 14 Pages -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS Tyco International Ltd. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) Not applicable -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF (see Item 3) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Bermuda -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY 0 OWNED BY EACH REPORTING PERSON WITH -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 8 SHARED VOTING POWER 11,591,405 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER 0 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 11,591,405 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11,591,405 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 96.6% -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- CUSIP No. 69912K206 13D Page 3 of 14 Pages -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS Tyco Healthcare Retail Group, Inc. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) ---------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF (see Item 3) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY 0 OWNED BY EACH REPORTING PERSON WITH -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 8 SHARED VOTING POWER 11,591,405 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER 0 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 11,591,405 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11,591,405 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 96.6% -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- CUSIP No. 69912K206 13D Page 4 of 14 Pages -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS Tyco Healthcare Acquisition Corp. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) ----------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF (see Item 3) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY 0 OWNED BY EACH REPORTING PERSON WITH -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 8 SHARED VOTING POWER 11,591,405 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER 0 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 11,591,405 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11,591,405 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES [ ] -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 96.6% -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO -------------------------------------------------------------------------------- Schedule 13D Item 1. Security and Issuer. This Statement on Schedule 13D (the "Statement") relates to the Common Stock, $.01 par value per share (the "Common Stock"), of Paragon Trade Brands, Inc., a Delaware corporation (the "Company"). The principal executive offices of the Company are located at 180 Technology Parkway, Norcross, Georgia 30092. Item 2. Identity and Background. (a) - (c) Tyco International Ltd., a Bermuda company ("Tyco"), is a diversified manufacturing and service company that, through its subsidiaries: designs, manufactures and distributes electrical and electronic components and multi-layer printed circuit boards; designs, manufactures and distributes disposable medical supplies and other specialty products; designs, manufactures, installs and services fire detection and suppression systems, installs, monitors and maintains electronic security systems and designs, manufactures, distributes and services specialty valves; designs, engineers, manufactures, installs, operates and maintains undersea cable communications systems; and offers vendor, equipment, commercial, factoring, consumer and structured financing and leasing capabilities. Tyco's registered offices are located at The Zurich Centre, Second Floor, 90 Pitts Bay Road, Pembroke HM 08, Bermuda. The executive offices of Tyco's principal United States subsidiaries are located at One Tyco Park, Exeter, New Hampshire 03833. Tyco Healthcare Retail Group, Inc., a Delaware corporation ("Tyco Healthcare Retail"), is an indirect, wholly owned subsidiary of Tyco engaged in the manufacture, sale and distribution of diapers, incontinence products and other absorbent personal hygiene products. The address of the executive offices of Tyco Healthcare Retail is 15 Hampshire Street, Mansfield, MA 02048. Tyco Healthcare Acquisition Corp., a Delaware corporation ("Tyco Acquisition"), is a direct wholly-owned subsidiary of Tyco Healthcare Retail. Tyco Acquisition is not engaged in any activity other than in connection with the acquisition of the Company. The address of the executive offices of Tyco Acquisition is One Tyco Park, Exeter, New Hampshire 03833. Tyco, Tyco Healthcare Retail and Tyco Acquisition are referred to collectively as the "Reporting Persons," and their agreement jointly to file this Statement is attached hereto as Exhibit 1. The name, business address and present principal occupation or employment of each of the executive officers and directors of Tyco, Tyco Healthcare Retail and Tyco Acquisition are set forth on Schedules I, II and III annexed hereto, respectively, which are incorporated herein by reference. (d) - (e) During the last five years, none of the Reporting Persons, and, to the best knowledge of the Reporting Persons, none of the persons listed on the Schedules hereto, has Page 5 of 14 Pages been convicted in a criminal proceeding (excluding traffic violations and similar misdemeanors) or has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. (f) Except as indicated on the Schedules, each natural person identified is a citizen of the United States. Item 3. Source and Amount of Funds or Other Consideration. Pursuant to the Merger Agreement (defined below), Tyco Acquisition will acquire 11,591,405 shares of Common Stock from certain stockholders of the Company for $43.50 per share in cash. Tyco Acquisition will finance the purchase with funds received from Tyco Healthcare Retail or one or more other subsidiaries of Tyco. The source of the funds will be the subsidiaries' working capital or Tyco's ordinary course financing programs, including the commercial paper program of one of its subsidiaries. Item 4. Purpose of Transaction. The purchase of the shares of Common Stock to which this Statement relates is part of the plan of the Reporting Persons to acquire the entire equity interest in the Company. Tyco Healthcare Retail and Tyco Acquisition have entered into a Stock Purchase Agreement and Plan of Merger, dated as of December 3, 2001 (the "Merger Agreement"), including a guarantee of Tyco, with the Company and the majority stockholders of the Company (the "Sellers"). The Merger Agreement is incorporated by reference in this Statement as Exhibit 2. Under the terms of the Merger Agreement, Tyco Acquisition has agreed to purchase from the Sellers, and the Sellers have agreed to sell to Tyco Acquisition, all of the shares of Common Stock owned by the Sellers for $43.50 per share in cash. Following the purchase and sale of the Sellers' Common Stock, Tyco Acquisition will be merged with and into the Company under the short-form merger procedures of the Delaware general corporation law. In the merger, the remaining stockholders of the Company will receive $43.50 per share of Common Stock in cash, and the surviving company in the merger will be a wholly-owned subsidiary of Tyco Healthcare Retail. On December 17, 2001, Tyco and the Company received notification of early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to the transactions contemplated by the Merger Agreement. Consequently, as of that date, the Reporting Persons may be deemed to have the right to acquire the Sellers' shares of Common Stock within 60 days and to beneficially own those shares pursuant to Rule 13d-3(d) under the Securities Exchange Act of 1934. Item 5. Interest in Securities of the Issuer. (a) As set forth in Item 4, the Reporting Persons may be deemed to beneficially own, directly or indirectly, an aggregate of 11,591,405 shares of Common Stock, representing Page 6 of 14 Pages approximately 96.6% of the 11,996,964 shares of Common Stock outstanding. The Reporting Persons do not concede, however, that they have such beneficial ownership. (b) Based on the transactions contemplated by the Merger Agreement, the Reporting Persons may be deemed to share power to vote and to dispose of the shares of Common Stock reported in this Statement. (c) Except for the execution and delivery of the Merger Agreement, there are no other transactions that were effected during the last 60 days by the Reporting Persons with respect to shares of Common Stock. (d) Not applicable. (e) Not applicable. Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer. Tyco Healthcare Retail, Tyco Acquisition, the Company and the Sellers have entered into the Merger Agreement, and Tyco has executed a guarantee of the obligations of Tyco Healthcare Retail and Tyco Acquisition under the Merger Agreement. See Item 4. Item 7. Material to be Filed as Exhibits. 1 Agreement of Joint Filing between Tyco, Tyco Healthcare Retail and Tyco Acquisition, dated December 27, 2001. 2 Stock Purchase Agreement and Plan of Merger, dated as of December 3, 2001, by and among Tyco Healthcare Retail, Tyco Acquisition, the Company and the Sellers, including a guarantee of Tyco (incorporated by reference from the Current Report on Form 8-K filed by the Company on December 7, 2001). Page 7 of 14 Pages SIGNATURES After reasonable inquiry and to the best knowledge and belief of the undersigned, the undersigned certifies that the information set forth in this Statement is true, complete and correct. Date: December 27, 2001 TYCO INTERNATIONAL LTD. By: /s/ Mark H. Swartz ------------------------------------- Name: Mark H. Swartz Title: Executive Vice President and Chief Financial Officer TYCO HEALTHCARE RETAIL GROUP, INC. By: /s/ Jeffrey D. Mattfolk ------------------------------------------- Name: Jeffrey D. Mattfolk Title: Vice President TYCO HEALTHCARE ACQUISITION CORP. By: /s/ Jeffrey D. Mattfolk ------------------------------------------- Name: Jeffrey D. Mattfolk Title: Vice President Page 8 of 14 Pages SCHEDULE I Executive Officers and Directors of Tyco International Ltd. Present Principal Name and Position Held Current Business Address Occupation or Employment ---------------------- ------------------------ ------------------------ L. Dennis Kozlowski Tyco International (US) Chairman of the Board of Chairman of the Board, Inc. Directors, President and President and Chief One Tyco Park Chief Executive Officer Executive Officer Exeter, NH 03833 of Tyco Lord Michael A. Ashcroft Carlisle Holdings Ltd. Chairman of Carlisle KCMG 60 Market Square Holdings Limited (citizen of Great Britain Belize City, Belize and Belize) Director Joshua M. Berman One Town Center Road Vice President of Tyco Director Boca Raton, FL 33486 Richard S. Bodman VMS Group Managing General Partner Director 2 Wisconsin Circle of VMS Group Suite 610 Chevy Chase, MD 20815 John F. Fort, III 1323 North Boulevard Chairman of the Board of Director Houston, TX 77006 Insilco Corp. Stephen W. Foss Foss Manufacturing Chairman and Chief Director Company, Inc. Executive Officer of Foss 380 Lafayette Road Manufacturing Company, Hampton, NH 03842 Inc. Wendy E. Lane Lane Holdings, Inc. Chairman of Lane Director 348 Grove Street Holdings, Inc. Needham, MA 02492 James S. Pasman, Jr. Tyco International (US) Director of CSAM Income Director Inc. Fund, Inc. and CSAM One Tyco Park Strategic Global Income Exeter, NH 03833 Fund, Inc.; Trustee of Deutsche Bank VIT Funds and Director of approximately 50 funds in the Warburg Pincus Funds Complex and the Credit Suisse International Funds Complex Page 9 of 14 Pages Present Principal Name and Position Held Current Business Address Occupation or Employment ---------------------- ------------------------ ------------------------ W. Peter Slusser Slusser Associates, Inc. President of Slusser Director One Citicorp Center Associates, Inc. Suite 5100 153 East 53rd Street New York, NY 10022 Mark H. Swartz Tyco International (US) Executive Vice President Executive Vice President, Inc. and Chief Financial Chief Financial Officer One Tyco Park Officer of Tyco and Director Exeter, NH 03833 Frank E. Walsh, Jr. Sandy Hill Foundation Chairman of Sandy Hill Director 330 South Street Foundation Morristown, NJ 07962 Joseph F. Welch The Bachman Company President and Chief Director 50 North Fourth Street Executive Officer of The Reading, PA 19612 Bachman Company Mark A. Belnick Tyco International (US) Executive Vice President Executive Vice President Inc. and Chief Corporate and Chief Corporate Counsel One Tyco Park Counsel of Tyco Exeter, NH 03833 Jerry R. Boggess Tyco International (US) President of Tyco Fire President of Tyco Fire Inc. and Security Services and Security Services Three Tyco Park Exeter, NH 03833 Albert R. Gamper, Jr. 1211 Avenue of the President and Chief President and Chief Americas Executive Officer of Tyco Executive Officer of Tyco New York, NY 10036 Capital Corporation Capital Corporation Juergen W. Gromer Postfach Carl Benz Str. President of Tyco President of Tyco 12-14 Electronics Electronics 64625 Benshiem, Germany Richard J. Meelia Tyco International (US) President of Tyco President of Tyco Inc. Healthcare Group Healthcare Group One Tyco Park Exeter, NH 03833 Page 10 of 14 Pages SCHEDULE II Executive Officers and Directors of Tyco Healthcare Retail Group, Inc. Present Principal Name and Position Held Current Business Address Occupation or Employment ---------------------- ------------------------ ------------------------ L. Dennis Kozlowski Tyco International (US) * Director Inc. One Tyco Park Exeter, NH 03833 Mark A. Belnick Tyco International (US) * Vice President Inc. and Director One Tyco Park Exeter, NH 03833 Mark H. Swartz Tyco International (US) * Vice President Inc. and Director One Tyco Park Exeter, NH 03833 Richard J. Meelia Tyco International (US) * President Inc. One Tyco Park Exeter, NH 03833 Charles J. Dockendorff Tyco International (US) Chief Financial Officer Vice President Inc. and Vice President of 15 Hampshire Street Tyco Healthcare Group LP Mansfield, MA 02048 Mark D. Foley Tyco International (US) Senior Vice President, Vice President Inc. Finance of Tyco One Town Center Road International (US) Inc. Boca Raton, Florida 33486-1010 Irving Gutin Tyco International (US) Senior Vice President of Vice President Inc. Tyco International (US) One Tyco Park Inc. Exeter, NH 03833 Jeffrey D. Mattfolk Tyco International (US) Senior Vice President, Vice President Inc. Mergers and Acquisitions One Tyco Park of Tyco International Exeter, NH 03833 (US) Inc. Michael Robinson Tyco International (US) Senior Vice President Treasurer Inc. and Corporate Treasurer One Tyco Park of Tyco International Exeter, NH 03833 (US) Inc. ----------- * Please see the information in Schedule I Page 11 of 14 Pages Scott Stevenson Tyco International (US) Senior Vice President, Vice President Inc. Tax of Tyco and Assistant Treasurer One Town Center Road International (US) Inc. Boca Raton, Florida 33486-1010 John H. Masterson Tyco International (US) Vice President and Vice President Inc. General Counsel of Tyco and Secretary 15 Hampshire Street Healthcare Group LP Mansfield, MA 02048 Heather L. Gerlach Tyco International (US) Legal Assistant of Tyco Assistant Secretary Inc. Healthcare Retail Group, 15 Hampshire Street Inc. Mansfield, MA 02048 M. Brian Moroze Tyco International (US) General Counsel to Tyco Assistant Treasurer Inc. International (US) Inc. One Tyco Park Exeter, NH 03833 Page 12 of 14 Pages SCHEDULE III Executive Officers and Directors of Tyco Healthcare Acquisition Corp. Present Principal Name and Position Held Current Business Address Occupation or Employment ---------------------- ------------------------ ------------------------ L. Dennis Kozlowski Tyco International (US) * President and Inc. Director One Tyco Park Exeter, NH 03833 Mark A. Belnick Tyco International (US) * Vice President Inc. and Director One Tyco Park Exeter, NH 03833 Mark H. Swartz Tyco International (US) * Vice President Inc. and Director One Tyco Park Exeter, NH 03833 Charles J. Dockendorff Tyco International (US) ** Vice President Inc. 15 Hampshire Street Mansfield, MA 02048 Mark D. Foley Tyco International (US) ** Vice President Inc. One Town Center Road Boca Raton, Florida 33486-1010 Jeffrey D. Mattfolk Tyco International (US) ** Vice President Inc. One Tyco Park Exeter, NH 03833 Richard J. Meelia Tyco International (US) * Vice President Inc. One Tyco Park Exeter, NH 03833 Page 13 of 14 Pages Present Principal Name and Position Held Current Business Address Occupation or Employment ---------------------- ------------------------ ------------------------ Michael Robinson Tyco International (US) ** Treasurer Inc. One Tyco Park Exeter, NH 03833 Scott Stevenson Tyco International (US) ** Vice President Inc. and Assistant Treasurer One Town Center Road Boca Raton, Florida 33486-1010 John H. Masterson Tyco International (US) ** Vice President Inc. and Secretary 15 Hampshire Street Mansfield, MA 02048 Heather L. Gerlach Tyco International (US) ** Assistant Secretary Inc. 15 Hampshire Street Mansfield, MA 02048 ----------- * Please see the information in Schedule I ** Please see the information in Schedule II Page 14 of 14 Pages EXHIBIT 1 Agreement of Joint Filing Pursuant to 13d-1(k)(1) promulgated under the Securities Exchange Act of 1934, as amended, the undersigned persons hereby agree to file with the Securities and Exchange Commission the Statement on Schedule13D and any future amendments thereto (the "Statement") to which this Agreement is attached as an exhibit, and agree that such Statement, as so filed, is filed on behalf of each of them. Date: December 27, 2001 TYCO INTERNATIONAL LTD. By: /s/ Mark H. Swartz ------------------------------- Name: Mark H. Swartz Title: Executive Vice President and Chief Financial Officer TYCO HEALTHCARE RETAIL GROUP, INC. By: /s/ Jeffrey D. Mattfolk ------------------------------------- Name: Jeffrey D. Mattfolk Title: Vice President TYCO HEALTHCARE ACQUISITION CORP. By: /s/ Jeffrey D. Mattfolk ------------------------------------- Name: Jeffrey D. Mattfolk Title: Vice President