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KPS CAPITAL PARTNERS AGREES TO ACQUIRE AMERICAN & EFIRD LLC
FROM RUDDICK CORPORATION
New
York, NY (October 27, 2011) -- KPS Capital
Partners, LP ("KPS") announced today that it has entered into
definitive agreements to acquire American & Efird LLC (“A&E” or the
definitive agreements to acquire American & Efird LLC (“A&E” or the
“Company”) from Ruddick Corporation (NYSE: RDK) (“Ruddick”) through a
newly-formed affiliate, A&E Global, for $180.0 million, subject to certain
post-closing adjustments.
A&E, headquartered
in Mt. Holly, North Carolina, is the largest U.S. manufacturer and the world's second-largest
manufacturer and distributor of premium quality industrial 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. A&E owns or operates 23 plants and
employs 11,000 associates around the world directly or in partnership with
joint venture partners.
Michael
Psaros, a KPS Managing Partner, said, “We are excited to create a new,
independent A&E Global. Rarely have we
seen a North American enterprise so successfully globalize by capitalizing on
its numerous competitive advantages and following its customers abroad, while still
retaining its core values. The Company is ideally positioned to benefit from
the growth of the world’s fastest growing markets. A&E’s exceptional high-quality
product offering, superior customer service, global footprint, operational and
technical expertise and customer base, together with financial resources
provided by KPS, will accelerate A&E's success and growth in the global
marketplace.”
Fred
Jackson, Chief Executive Officer of A&E, said, “Our management team and
associates are very excited to be part of the KPS portfolio of companies. KPS uniquely recognized the true value of our
business created over decades, especially the superior growth and momentum achieved
in China, India and Greater Asia.
We are impressed by KPS’s commitment to manufacturing excellence, which will
enable us to continue to provide our customers with industry-leading products
and superior service. We expect that our
strong balance sheet and access to KPS’s financial resources will enable us to continue
our global growth strategy.”
Completion
of the transaction is expected in the fourth quarter of 2011 and is subject to
customary closing conditions.
Paul, Weiss, Rifkind, Wharton &
Garrison LLP served as legal counsel to KPS and its affiliates.
About
American & Efird LLC
American & Efird
("A&E") is one of the world's largest global manufacturers and
distributors of industrial sewing thread, embroidery thread and technical
textiles, produced from natural and synthetic fibers. Producers of apparel,
automotive components, home furnishings, medical supplies and footwear rely on
A&E industrial sewing thread to manufacture their products.
A&E, headquartered in Mt. Holly,
North Carolina, is the largest U.S. manufacturer and the world's second-largest
manufacturer and distributor of premium quality industrial 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. A&E owns or operates 23 plants and employs
11,000 associates around the world directly or in partnership with joint
venture partners.
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. Learn more about
A&E at www.amefird.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.
