KPS Capital Partners, LP

KPS has worked constructively with most of the major industrial and service unions in the United States and Canada. We have sponsored many transactions in partnership with unions, and unions bring a significant number of quality investment opportunities to our attention every year. Unions work with KPS because of our respect for the collective bargaining process, our long history of working constructively with unions in connection with difficult financial transactions and buyouts, and our successful track record in creating viable and profitable going concerns.

KPS expects that many of our investments will involve meaningful participation from a company’s employees in the restructuring and turnaround process. Central to our approach is the creation of participatory, communicative and empowered corporate cultures that encourage employee input and involvement in all levels of decision-making. For example, while KPS is a control investor, several of our portfolio companies have employee representation on boards of directors.

Our approach has resulted in the successful turnaround of numerous companies and stands in sharp contrast to the confrontational approach often relied upon by other investors in distressed situations.

Mr. Leo Gerard, President of the United Steelworkers, on the sale of Blue Ridge Paper Products Inc.

"As a result of the acquisition of Blue Ridge Paper by Packaging Holdings Incorporated the USW employee-owners, our Union and KPS Capital was a driving force in creating a new and successful company out of assets many industry experts said should close. I congratulate all of those involved on their accomplishment. Through our members' sacrifices, investment in their futures, hard work, dedication and focus, we have again proven the experts were wrong. The Company's employee-owners and our USQ members are receiving nearly $30 million of cash in their Employee Stock Ownership Plan (ESOP) accounts, a new and improved collective bargaining agreement, and a bright future with Packaging Holdings Incorporated. This is another example of the successful collaboration between Steelworkers and KPS over the past two decades."

Mr. Thomas Buffenbarger, President of the International Association of Machinists, on the sale of Genesis Worldwide II, Inc.

"Our members truly appreciate the decision in 2001 by KPS and its equity partner to keep high-skilled manufacturing in Pennsylvania. Genesis Worldwide II shows that a troubled company can become competitive again by working with its employees. This has been a success for the investors, management, the employees, and their community. In addition to creating job stability by growing the company together, our members and other employees also have a more secure retirement since Genesis Worldwide II contributes to the IAM National Pension Fund. We look forward to working with the new owners to keep this company going in the right direction."

On The Web:

» Financial Times - "The friendly barbarian"

» St. Louis Post-Dispatch: KPS Capital Partners works with unions for a smooth transition

» UAW Local 1131 Works with New Employer to Save Jobs

» Union Lauds ESOP Group Buyout of Canton, N.C. Paper Mill

» North Carolina Local Union Members become Mill Owners in ESOP

» Friend or Foe? AFL-CIO Study Rates the Worker Friendliness of 37 Funds