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KPS CAPITAL PARTNERS, LP, THROUGH AN AFFILIATE, AGREES TO ACQUIRE THYSSENKRUPP WAUPACA, INC.
New York, NY (May 15, 2012)
-- KPS Capital Partners, LP ("KPS") announced today that,
through a newly formed company, W Foundry International, Inc. and its
affiliates, it has entered into definitive agreements to acquire
ThyssenKrupp Waupaca, Inc. (“Waupaca” or the “Company”) from ThyssenKrupp
Budd Company. Financial terms of the transaction were not disclosed.
Waupaca is the
largest iron foundry company in the world and produces gray and ductile
iron castings using state-of-the-art technology. Waupaca is North
America’s leading supplier of iron castings to the automotive, truck,
agriculture, construction, hydraulics and commercial vehicle markets.
Headquartered in Waupaca, Wisconsin, the Company operates six
manufacturing facilities, located in Wisconsin, Indiana, and Tennessee. The Company employs approximately 3,500
people.
David Shapiro,
a KPS Managing Partner, said, “We are very excited to create an
independent Waupaca Foundry.
Waupaca is the largest company in its industry worldwide with the
leading North American market share in each of its diverse end markets
and strong customer relationships that have been developed over decades
of partnership. The Company possesses world-class assets, unrivaled scale
and scope, industry leading quality and service, and a commitment to
investing in state-of-the-art technology and process development. We look forward to working with Chief Executive
Officer Gary Gigante, his management team and
all of Waupaca’s employees to build on this great platform by
strategically expanding into regions where Waupaca’s key customers are
growing. The combination of the
Company’s unique strengths and the financial resources of KPS will
provide the foundation for Waupaca’s future growth, both organically and
through acquisitions in North America and around the world.”
Gary Gigante, President and Chief Executive Officer of
Waupaca, said “We are thrilled to become an independent company under
KPS’ ownership. KPS’ commitment to manufacturing excellence and
enthusiastic support of our extraordinary growth trajectory and
globalization initiatives positions our Company for continued success. We
look forward to continuing to provide our customers with industry leading
quality, customer service and innovation.”
The closing of
the transaction is expected during the second quarter of 2012 and is
subject to customary closing conditions.
ThyssenKrupp Waupaca, Inc. will be renamed Waupaca Foundry, Inc.
upon closing of the transaction.
Perella Weinberg
Partners, L.P. acted as financial advisor and Paul, Weiss, Rifkind, Wharton and Garrison LLP served as legal
counsel to KPS and W Foundry International, Inc. and its affiliates. Financing for the transaction will be
provided by a syndicate of banks and institutional investors with GE Capital
Markets, Inc., RBC Capital Markets and Wells Fargo Capital Finance acting
as Lead Arrangers.
About ThyssenKrupp Waupaca, Inc.
ThyssenKrupp Waupaca,
Inc., the largest independent iron foundry in the world, produces gray
and ductile iron castings using state-of-the-art technology. Markets
served include automotive, truck, agriculture, construction, hydraulics
and commercial vehicles. With headquarters and three plants in Waupaca,
Wisconsin and one in Marinette, Wisconsin, as well as plants in Tell
City, Indiana, and Etowah, Tennessee, Waupaca employs approximately
3,500.
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
$5.0 billion, operate 73 manufacturing plants in
12 countries, and employ over 23,000 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.
