In The News

KPS Special Situations Fund, L.P. Makes A Controlling Investment In Transit Bus Manufacturer, New Flyer Industries, Ltd.

Mar 18, 2002

New York, NY (March 18, 2002) – The KPS Special Situations Fund, L.P. ("KPS") today made a controlling investment, through an affiliate, in New Flyer Industries, Ltd. ("New Flyer"), the leading producer of transit buses in North America, pursuant to a multi-stakeholder recapitalization and restructuring of the Company.

New Flyer is headquartered in Winnipeg, Manitoba and has two additional production facilities in St. Cloud and Crookston, Minnesota. With over $700 million CDN in revenue in 2001 and over 1,500 employees, New Flyer is the market share leader of transit buses in North America, serving most of the major municipalities and transit agencies throughout the United States and Canada.

The transaction is the culmination of nearly one year of restructuring efforts at New Flyer and involved the participation of virtually all of the Company's primary stakeholders. David Shapiro, a Managing Principal of KPS said, "The New Flyer acquisition fits perfectly with KPS's constructive approach to investing. The transaction could not have been completed without the contributions of numerous important stakeholders, including the Province of Manitoba through its Manitoba Development Corporation, the Company'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.

KPS invested $44 million CDN of equity in the transaction and the Province of Manitoba invested $20 million CDN in the form of a subordinated loan. All of the net proceeds invested by KPS and the Province will be retained in the Company to recapitalize the Company's balance sheet and to fund normal operations. In connection with the KPS investment, New Flyer issued new shares of common stock to KPS. The founding shareholder, Mr. Jan den Oudsten will retain a minority stake in New Flyer. He will stay on as the Company's non-executive chairman and will be involved in certain special projects. A new chief executive officer will be named shortly.

"We look forward to building upon the very solid foundation that exists at New Flyer, continuing its commitment to innovation and industry leadership and providing its customers with the highest levels of quality and service. We believe the Company is in excellent shape operationally and financially, with a vastly improved balance sheet and enhanced liquidity position," continued Mr. Shapiro.

New Flyer represents the seventh completed transaction for KPS and its second in the transportation industry. KPS Special Situations Fund, L.P., managed by Eugene Keilin, Michael Psaros and David Shapiro, is a New York City-based private equity fund focused on constructive investing in restructurings, turnarounds, and other special situations. More information on KPS, its portfolio companies and investment strategy can be found at www.kpsfund.com.

About KPS Capital Partners

KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.4 billion of assets under management (as of September 30, 2024).  For over three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment, and general manufacturing.  KPS creates value for its investors by working constructively with talented management teams to make businesses better and generates investment returns by structurally improving the strategic position, competitiveness, and profitability of its portfolio companies, rather than primarily relying on financial leverage.  The KPS Funds’ portfolio companies currently generate aggregate annual revenues of approximately $23.7 billion, operate 251 manufacturing facilities in 30 countries, and have approximately 65,000 employees, directly and through joint ventures worldwide (as of September 30, 2024, pro forma for recent acquisitions).  The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.

KPS Mid-Cap focuses on investments in the lower end of the middle market that require up to $200 million of initial equity capital. KPS Mid-Cap targets the same type of investment opportunities and utilizes the same investment strategy that KPS’ flagship funds have for nearly three decades. KPS Mid-Cap leverages and benefits from KPS’ global platform, reputation, track record, infrastructure, best practices, knowledge and experience. The KPS Mid-Cap investment team is managed by Partners and Co-Heads Pierre de Villeméjane and Ryan Harrison, who lead a team of experienced and talented professionals.

← Back to in the News

footer-logo

One Vanderbilt Avenue, 52nd Floor
New York, NY 10017
T: 212.338.5100 | F: 646.307.7100

The information set forth in the materials on this site is as of September 30, 2024 (portfolio company data is as of September 30, 2024, pro forma for recent acquisitions) and does not purport to be a complete summary of KPS or its investments. No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained in such materials. No reliance may be placed for any purpose on the information and opinions contained in such materials or their accuracy or completeness and nothing in such materials may be relied upon in making any investment decision. Certain information on or linked to from this site is furnished by or is derived from materials furnished by outside sources. KPS does not assume responsibility for independent verification of such information and has relied on such information being complete and accurate in all material respects. Any information presented by outside sources represents the understandings and opinions of such outside sources, which may differ from those of KPS. Any statements and quotes from third-parties are not selected on the basis of any performance-based data. Any performance information included in any document on or linked to from this site is presented for illustrative purposes only and is not indicative of the future returns of any of the funds managed by KPS and there can be no assurance that such funds will achieve comparable results, be able to avoid losses or be able to implement their investment strategies.

For information on our data processing practices, please read our privacy policy here.

To read our Diversity, Equity and Inclusion Statement, please click here.

For more information on the “Explanatory Documents for KPS Investors V, Ltd under Article 63-4(3) of Financial Instruments and Exchange Act of Japan” please click here.

For more information on the “Explanatory Documents for KPS Investors VI, Ltd under Article 63-4(3) of Financial Instruments and Exchange Act of Japan” please click here (Form 21-3) and here (Form 20-2).

For disclosures pursuant to the EU Sustainable Finance Disclosure Regulation (SFDR), please click here.