KPS sold New Flyer Industries, Ltd. To Harvest Partners Fund IV, L.P. in February 2004. KPS returned more than 7.5x its invested capital in New Flyer to its Investors in connection with the sale transaction. New Flyer Industries, Ltd. ("New Flyer") is the market-share leader in transit bus manufacturing in North America, serving most major municipalities and transit agencies. New Flyer designs and manufactures transit buses and provides parts and aftermarket sales and services for the North American market.
In March 2002, KPS completed a change-of-control transaction and recapitalization of New Flyer as part of a multi-stakeholder restructuring of the Company. The KPS sponsored out-of-court restructuring of New Flyer resulted in KPS’s ownership of a significant majority of New Flyer's common equity. The balance of New Flyer's common equity was owned by the Company's founder and former sole owner along with senior management. The investment was successful because of contributions by numerous important stakeholders, including the Province of Manitoba through its Manitoba Development Corporation; New Flyer's key suppliers, customers and lenders; all of its employees and the leadership of its two unions - the Canadian Auto Workers Union (CAW) in Winnipeg and the Communications Workers of America (CWA) in Crookston; as well as the federal government of Canada through its Western Economic Development Fund. www.newflyer.com NEWS ARTICLES: March 2, 2004 KPS Special Situations Fund, L.P. Completes Sale of New Flyer to Harvest Partners January 12, 2004 Alternative Universe "Bus Manufacturer Sale Arrives Right on Time" January 5, 2004 BUYOUTS (published by Venture Economics) "KPS Drops Off Bus Co." December 17, 2003 THE DAILY DEAL "Harvest opts to take the (New Flyer) bus" March 18, 2002 KPS Special Situations Fund, L.P. Makes A Controlling Investment In Transit Bus Manufacturer, New Flyer Industries, Ltd.