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FOR IMMEDIATE
RELEASE
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Business Inquiries:
KPS 212.338.5100
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Media Relations:
Mark Semer
212.521.4800
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KPS CAPITAL PARTNERS ACQUIRES THE ASSETS OF
UNITED COPPER INDUSTRIES, INC.
New York, NY (September 28,
2011) -- KPS Capital Partners, LP ("KPS") announced today the
acquisition of substantially all of the assets of United Copper
Industries, Inc. (the “Seller”), an affiliate of Organización
IUSA, S.A. de C.V. (“IUSA”), through a newly formed company (“UCI” or
“United Copper”). Financial terms
of the transaction were not disclosed.
UCI is a leading manufacturer and
distributor of building wire and cable used in the construction of
industrial, residential and commercial buildings in North America. United Copper manufactures all major
types of 600-volt building wire and cable, including Thermoplastic High
Heat Resistant Nylon (“THHN”) wire, Thermoplastic Flexible Fixture Nylon
(“TFFN”) wire, Non-Metallic (“NM-B”) cable, Underground Feeder (“UF-B”)
cable, Metal-Clad (“MC”) cable and Bare wire. All UCI products are Underwriters
Laboratory approved and listed.
UCI operates a state-of-the-art,
vertically integrated environmentally friendly manufacturing facility
located in Denton, Texas, and sells its products through prominent
national, regional and local electrical distributors across the
country.
David Shapiro, a KPS Managing
Partner, said, “We are very excited to acquire the assets of United
Copper, which we believe represents an exceptional investment
opportunity. The combination of
UCI’s low-cost manufacturing base, first-rate management team,
operational and technical expertise, and strong customer relationships,
alongside the financial resources provided by KPS, will allow UCI to
achieve its full potential as an industry leader. Our investment in United Copper is just
the first step in the creation of a larger enterprise. We intend to aggressively grow UCI both
organically and through acquisition.”
Andy Blanchard, Chief Executive
Officer of UCI, said, “UCI is thrilled to become an independent,
U.S.-based company owned by KPS, which recognizes the true value of our
business. We are very impressed by KPS’s
commitment to manufacturing excellence and to supporting our growth. With access to KPS’ capital and our
strong balance sheet, we will continue to provide our customers with
industry-leading products and superior service, and expect to be an
industry consolidator by acquiring companies in our core and
complementary product areas.”
Financing for the transaction was
provided by GE Capital, Corporate Finance. Paul, Weiss, Rifkind,
Wharton & Garrison LLP served as legal counsel to KPS and its
affiliates.
About United
Copper
UCI is a leading manufacturer
and distributor of building wire and cable used in the construction of
industrial, residential and commercial buildings in the United States and
Canada. United Copper manufactures
all major types of 600-volt building wire and cable used in both
residential and commercial construction, including Thermoplastic High
Heat Resistant Nylon (“THHN”) wire, Thermoplastic Flexible Fixture Nylon
(“TFFN”) wire, Non-Metallic (“NM-B”) cable, Underground Feeder (“UF-B”)
cable, Metal-Clad (“MC”) cable and Bare wire. Building wire serves as the essential
conduit to carry electrical current to all external uses of power in a building
or dwelling. All UCI products are Underwriters Laboratory approved and
listed. UCI operates a
state-of-the-art, vertically integrated manufacturing facility located in
Denton, Texas. UCI is a leader in
green technology by manufacturing lead-free products and powering its
facility with over 40% renewable energy.
United Copper sells its products through prominent national,
regional and local electrical distributors across the country. Additional information regarding UCI
and its products can be found at www.unitedcopper.com.
About KPS
Capital Partners, LP
KPS Capital Partners, LP is the
manager of the KPS Special Situations Funds, a family of private equity
funds with over $2.7 billion of assets under management focused on constructive
investing in restructurings, turnarounds and other special situations.
KPS has created new companies to purchase operating assets out of
bankruptcy; established stand-alone entities to operate divested assets;
and recapitalized highly leveraged public and private companies. The KPS
investment strategy targets companies with strong franchises that are
experiencing operating and financial problems. KPS invests its capital
concurrently with a turnaround plan predicated on cost reduction, capital
investment and capital availability. Typically, the KPS turnaround plan
is accompanied by a financial restructuring of the company's liabilities.
The KPS investment strategy and portfolio companies are described in
detail at the firm's website: www.kpsfund.com.
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