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FOR IMMEDIATE RELEASE
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Business
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KPS 212.338.5100
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KPS CAPITAL PARTNERS PORTFOLIO COMPANY
INTERNATIONAL EQUIPMENT SOLUTIONS, LLC ACQUIRES SIAC DO BRASIL LTDA. FROM
SIAC S.p.A. AND ITS AFFILIATES
ANNOUNCES
FORMATION OF ALLIANCE
New York, NY (June 4, 2012)
– KPS Capital Partners, LP (“KPS”) today announced that its portfolio
company International Equipment Solutions, LLC ("IES”) has acquired,
through an indirect, wholly owned subsidiary, Siac
do Brasil Ltda. (“Siac
do Brasil” or the “Company”) from SIAC S.p.A. (“SIAC”) and its affiliates. IES and SIAC also announced an alliance
agreement whereby the parties would cooperate in the future. This is the third acquisition by IES
since its formation. Financial
terms of the transaction were not disclosed.
KPS formed IES in September 2011
as a platform for investments serving the construction, agriculture,
landscaping, infrastructure, recycling, demolition, mining, and energy
industries. At that time, KPS also announced IES’s first two acquisitions,
Paladin Brands Holding, Inc. and Crenlo LLC
from Dover Corporation. In November 2011, Mr. Stephen Andrews
was retained as Chief Executive Officer of IES to lead the integration of
IES’ first two acquisitions and to aggressively grow and globalize the
company.
Siac do Brasil is the leading manufacturer of cab enclosures
in Brazil. The Company also manufactures locomotive cabs as well as
complex fabrications for off-highway machinery, and its customers include
the world’s leading original equipment manufacturers involved in the
construction, infrastructure, mining, forestry and agriculture
industries. SIAC is one of the largest global manufacturers of cab
enclosures, with operations in Italy, Slovenia, Bosnia, Brazil and India.
Raquel Palmer, a Partner at KPS,
said, “The launch of IES has exceeded all of our expectations. In a brief
nine months, we have created the leading independent engineered equipment
company in the Western Hemisphere, completing three highly synergistic
acquisitions and successfully transforming a purely U.S. company into a
global competitor. We are very excited about cooperating with SIAC.
Together our companies will provide our customers with global
manufacturing and service solutions. We look forward to continuing to
aggressively grow IES through acquisitions around the world.”
Steve Andrews, Chief Executive
Officer of IES, said, “The acquisition of Siac
do Brasil is a critical strategic step in the
growth and globalization of IES.
We are very impressed with the Company’s rapid growth trajectory,
customer base, quality and technical capabilities. The acquisition not only expands many
of our current North American OEM supply partnerships into the Brazilian
market, but further broadens our customer base as well. Additionally, the acquisition
introduces IES as an important supplier in the rapidly growing Brazilian
locomotive market. As demonstrated
with this acquisition, IES will continue our commitment toward supporting
our customer’s global expansion initiatives with localized supply,
technical resources and parts and service support. IES intends to invest significant
additional capital and resources into Siac do Brasil to ensure the highest level of production
quality for our customers and to increase capacity not only for cabs, but
to support the growth of IES’ attachment tools product lines in South
America as well. IES has made tremendous progress in our first nine
months and I believe our future is very bright.”
Paul, Weiss, Rifkind,
Wharton and Garrison LLP and Machado, Meyer, Sendacz
e Opice Advogados
served as legal counsel to KPS and IES and its affiliates. Financing for
the transaction was provided by a syndicate of institutional investors
agented by Regiment Capital Advisors, LP and PNC Bank, National
Association.
Emanuele Cortesi and Matteo Ghilatdi of Caffi-Maroncelli
& Associati and De Luca Joao and Luis Rouz of DeLuca Derenusson, Schuttoff e Azevedo Advogados served as legal counsel to Siac S.p.A and Siac do Brasil.
About
International Equipment Solutions, LLC
IES is a global engineered
equipment platform serving the construction, agriculture, landscaping,
infrastructure, recycling, demolition, mining, and energy markets. IES
operates through six operating units, including Paladin, Genesis, Pengo and Jewell, all of whom are leading
manufacturers of engineered attachment tools for operator driven
equipment, Crenlo, a leading North American manufacturer
of cab enclosures for operator-driven equipment as well as specialty
electronic enclosures, and Siac do Brasil, the leading supplier of heavy equipment cab
enclosures and locomotive sub-assemblies in the South American market.
IES’ customers include major OEMs, national rental fleet companies and
hundreds of independent and OEM-aligned dealers. IES employs over 2,500
people and operates 15 manufacturing facilities in the United States,
Germany, and Brazil.
About
SIAC S.p.A.
Founded in 1966 and
headquartered in Bergamo, Italy, SIAC S.p.A. is
one of the largest global manufacturers of cab enclosures. In particular, SIAC S.p.A.
specializes in the design and manufacture of driver units, complete cabs
and components for earth moving and agricultural machinery and
equipment. SIAC S.p.A. serves many of the world’s leading original
equipment manufacturers through operations based in Italy, Slovenia,
Bosnia, Brazil and India. Leading
manufacturers worldwide rely on SIAC as a global, strategic partner capable
of meeting their needs in terms of innovation, reliability, and quality.
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 $2.8 billion of assets under management focused on
constructive investing in corporate carve-outs, restructurings and other
special situations. KPS has executed highly complex corporate carve-out
transactions on a global basis, and has acquired businesses from numerous
Global Fortune 500 companies. The KPS investment strategy targets
manufacturing and industrial companies with strong market positions that
are going through a period of transition or experiencing operating or
financial difficulties. For nearly two decades, the partners of KPS have
worked with the management teams and associates of its portfolio
companies to improve operating and financial performance by focusing on
cost reduction, efficiency, operational excellence and strategic growth
initiatives. KPS Portfolio Companies have aggregate annual revenues of $6.2
billion, operate 90 manufacturing plants in 24
countries, and employ over 29,000 associates, directly and through joint
ventures worldwide. The KPS investment strategy and portfolio companies
are described in detail at the firm's website: www.kpsfund.com.
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