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IMMEDIATE RELEASE
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KPS
CAPITAL PARTNERS PORTFOLIO COMPANY, MOTOR COACH INDUSTRIES INTERNATIONAL,
AND DAIMLER BUSES (DAIMLER) ENTER INTO A STRATEGIC PARTNERSHIP IN NORTH
AMERICA
DAIMLER RECEIVES MINORITY OWNERSHIP POSITION IN MCI
New York, NY (July 2nd,
2012) -- KPS Capital Partners, LP ("KPS") announced today its
portfolio company, Motor Coach Industries International, Inc. (“MCI” or
the “Company”), has entered into a strategic partnership with Daimler in North
America. In connection with the
transaction, Daimler is receiving a minority ownership position in MCI,
and MCI is becoming the exclusive distributor of Setra
motor coaches and aftermarket parts in the United States and Canada. Financial terms of the transaction were
not disclosed.
MCI is the largest manufacturer
of intercity highway coaches in North America and has the largest
installed fleet. MCI is also an
industry leading provider of aftermarket parts and service. Daimler is the world’s largest
manufacturer of buses and coaches over 8 tons gross vehicle weight.
This strategic
partnership with Daimler will further strengthen MCI’s leadership
position in North America by adding the luxury Setra
motor coach to MCI’s product portfolio.
In addition, MCI will gain access to Daimler’s world class
engineering and manufacturing capabilities and highly advanced
technologies. Setra
and Daimler will share in MCI’s best-in-class sales, distribution and
service infrastructure throughout the United States and Canada. All parties will benefit from
purchasing economies of scale and the sharing of manufacturing best
practices.
Jay Bernstein,
a Partner of KPS, said, “KPS and MCI are very excited to establish this
partnership with Daimler. The
investment by Daimler validates MCI’s transformation under KPS’ ownership
and accelerates the company’s growth trajectory. MCI is clearly positioned as a market and technological leader in the U.S. and
Canadian motor coach industry.”
Paul, Weiss, Rifkind, Wharton and Garrison LLP served as legal
counsel to KPS with respect to the transaction.
About Motor Coach Industries
International, Inc.
Motor
Coach Industries International, Inc. (“MCI”) is a leading manufacturer of
intercity coaches in the U.S. and Canada. Reliability driven, MCI builds
expertly engineered, best-selling models for the tour, charter,
line-haul, commuter and transit segments. MCI also offers 24-hour technical
support, industry-leading technician training and the most extensive
aftermarket parts and repair service. Please visit www.mcicoach.com for more
information.
About Daimler
Daimler AG is one of the world’s most
successful automotive companies. With its divisions
Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz
Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is
one of the biggest producers of premium cars and the world’s biggest
manufacturer of commercial vehicles with a global reach. Daimler
Financial Services provides financing, leasing, fleet management,
insurance and innovative mobility services. Daimler sells its vehicles
and services in nearly all the countries of the world and has production
facilities on five continents. Its current brand portfolio includes, in
addition to the world’s most valuable premium automotive brand, Mercedes-Benz, the brands
smart, Maybach, Freightliner, Western Star, BharatBenz, Fuso, Setra,
Orion and Thomas Built Buses. The company is listed on the stock
exchanges of Frankfurt and Stuttgart (stock exchange symbol DAI). In
2011, the Group sold 2.1 million vehicles and employed a workforce of
more than 271,000 people; revenue totaled €106.5 billion and EBIT
amounted to €8.8
billion.
About Setra
Setra is a recognized industry leader in motorcoach innovation, quality, and design worldwide.
Setra manufactures motor coaches of first-class
luxury, appeal and value.
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
$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 over
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 $7.8 billion, operate 96
manufacturing plants in 24 countries and employ over 33,000 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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