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IMMEDIATE RELEASE

Business Inquiries:
KPS Capital Partners  212.338.5100

Media Relations:
Mark Semer 212.521.4800

 

KPS CAPITAL PARTNERS PORTFOLIO COMPANY
AMERICAN & EFIRD TO ACQUIRE FULL OWNERSHIP OF JOINT VENTURE HUAMEI THREAD COMPANY LIMITED

 

New York, NY (April 21, 2015) – KPS Capital Partners, LP (“KPS”) today announced that its portfolio company American & Efird (“A&E” or the “Company”) will acquire the outstanding fifty percent share  ownership of Huamei Thread Company Limited (“Huamei”) from its joint venture partner, Ningbo Veken Elite Group Co., Ltd (“Veken”).  Upon completion of the transaction, A&E will own 100% of Huamei.  The transaction has been approved by stockholders of A&E and Veken, but is still subject to customary closing conditions.  Financial terms of the transaction were not disclosed.

 

A&E is the largest U.S. manufacturer and the world’s second-largest manufacturer and distributor of premium quality industrial and consumer sewing thread, embroidery thread and technical textiles.  A&E thread is used by producers of apparel, automotive components, home furnishings, medical supplies, footwear and certain industrial products.  Through its global network, A&E’s products are manufactured in 23 countries, distributed in 50 countries and sold in over 100 countries.  A&E owns or operates 28 manufacturing facilities and employs over 9,000 associates around the world directly or in partnership with joint venture partners. 

 

Michael Psaros, a Managing Partner of KPS, said, “KPS acquired A&E in 2011 to create the premier global manufacturer of industrial sewing thread.  Through four highly synergistic acquisitions, A&E continues to successfully expand into adjacent geographies, products and end-markets.  The acquisition of Huamei further strengthens A&E’s global footprint, significantly streamlines and integrates A&E’s Asian operations and positions A&E to benefit fully from the fast-growing demand for high-quality products in China’s domestic market.  We will continue to grow A&E aggressively both organically and through acquisitions.”

 

Fred Jackson, Chief Executive Officer of A&E, said, “The acquisition of Huamei is an important step in A&E’s continued growth and diversification.  Taking full ownership and control of Huamei enhances our ability to provide customers with the highest quality thread and superior service around the world.  A&E is excited to add Huamei’s nationally recognized brand, Dunhuang, to its robust portfolio of high-quality brands and products.  Dunhuang’s strong heritage and excellent reputation in the local Chinese market will further strengthen A&E’s product offering to its customers.  A&E will invest significant capital and resources into Huamei to ensure the highest levels of product quality, environmental sustainability, technological innovation and customer service. 

 

Completion of the transaction is expected in May 2015 and is subject to customary closing conditions.

 

Baker & McKenzie LLP and McGuireWoods LLP served as legal counsel to A&E and its affiliates.

 

About American & Efird

 

A&E is the largest U.S. manufacturer and the world’s second-largest manufacturer and distributor of premium quality industrial and consumer sewing thread, embroidery thread and technical textiles.  Producers of apparel, automotive components, home furnishings, medical supplies, footwear and a diverse range of industrial products rely on A&E industrial sewing thread to manufacture their products.  Customers select A&E as the preferred choice for industrial sewing thread, embroidery thread and technical textiles because of A&E's dedication to providing its customers with the finest products and services, at the highest quality, delivered globally.  Through its global network, A&E's products are manufactured in 23 countries, distributed in 50 countries and sold in over 100 countries.  In addition to A&E's steadfast commitment to superior quality and customer service, A&E is a recognized industry leader in environmental sustainability and corporate social responsibility, and operates its global facilities with the utmost regard for the safety and health of its associates employed worldwide.   A&E owns or operates 28 manufacturing facilities and employs over 9,000 associates around the world directly or in partnership with joint venture partners.  For more information, please visit www.amefird.com.

 

About KPS Capital Partners, LP

 

KPS is the manager of the KPS Special Situations Funds, a family of investment funds with more than $5.7 billion of assets under management.  KPS seeks to realize significant capital appreciation by making controlling equity investments in companies across a diverse range of manufacturing industries experiencing a period of transition or challenged by the need to effect immediate and significant change.  The KPS investment strategy is based primarily upon partnering with world-class management teams to effect material and sustainable improvements in the operations of its businesses.  Thereafter, KPS focuses on growing its businesses, both organically and through strategic acquisitions.  KPS portfolio companies have aggregate annual revenues of approximately $6.4 billion, operate 106 manufacturing facilities in 26 countries, and employ more than 45,000 associates, directly and through joint ventures worldwide.  The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.

 

 

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