Press Releases

KPS Special Situations Funds' Portfolio Company, Hephaestus Holdings, Inc., Acquires Impact Forge and Omni Forge

Jul 14, 2006

Creates North America's Largest Independent Manufacturer of Highly Engineered Automotive Forgings

New York, NY (July 14, 2006) -- KPS Special Situations Funds ("KPS") announced today that its portfolio company, Hephaestus Holdings, Inc. ("HHI"), has acquired the assets and business of Impact Forge, Inc., Impact Precision Forge, Inc., Omni Forge, Inc. and related entities (collectively "Impact Forge") through a newly formed subsidiary, Impact Forge Group, Inc. HHI, which is also the parent company of Jernberg Holdings, Inc., is now the largest independent manufacturer of highly engineered forgings for the North American automotive industry. Financial terms of the transaction were not disclosed.

Impact Forge is a leading manufacturer of highly engineered symmetrical and asymmetrical forged parts for transmission, driveline and wheel-end applications. Employing over 500 employees, Impact Forge operates four manufacturing facilities around Indianapolis, Indiana and Coldwater, Michigan.

Michael Psaros, Managing Principal of KPS, said, "KPS created HHI in September 2005 to consolidate the North American automotive forging industry behind the leadership of George Thanopoulos and his management team. Through the acquisitions of Jernberg, Impact and Omni, we have quickly created the largest independent automotive forging company in North America. HHI is now a superbly managed, profitable, conservatively capitalized company which is unencumbered by legacy liabilities confronting other automotive parts suppliers. We are confident that HHI will continue its aggressive growth trajectory, both organically and through further acquisitions."

Mr. Thanopoulos, Chief Executive Officer of HHI, said, "The acquisition of Impact Forge and Omni Forge is a critical step in the growth of HHI. We are very impressed with Impact's and Omni's growth, profitability, customer base and technical capabilities. HHI is now uniquely positioned to offer our customers products manufactured through a wide range of technologies, including cold, warm and hot forgings, wedge rolling, ring-rolling, hydraulic upsetting and hammer presses. The acquisition diversifies our automotive customer base and introduces HHI as a competitor in the heavy truck, mining, and industrial forgings market."

"Our progress in only ten months has been remarkable, and our future is very bright," Mr. Thanopoulos continued. "First and foremost, we are grateful to our customers, employees and suppliers for their loyal support of HHI's businesses. We also thank KPS for creating HHI, assembling our management team and sponsoring our turnaround plan. It is a pleasure to partner with owners who understand that the key to creating real value is executing on the shop floor every day."

Financing for the transaction was provided by LaSalle Business Credit, NA.

About Hephaestus Holdings, Inc.

Hephaestus Holdings, Inc. ("HHI"), through its Jernberg Holdings, Inc. and Impact Forge Holdings, Inc. subsidiaries, is the largest independent manufacturer of forged parts for the North American automotive industry. Jernberg Holdings, Inc. (www.jernberg.com), through its subsidiaries, manufacturers highly engineered symmetrical forged parts for various power-train and wheel-end applications. Impact Forge Group, Inc. (www.impactforge.com) manufactures highly engineered symmetrical and asymmetrical forged parts for transmission, power-train and wheel-end applications. Employing over 1,200 employees, HHI operates eight manufacturing facilities located in the Chicago, Illinois, Indianapolis, Indiana and Coldwater, Michigan vicinities.

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 $13.4 billion of assets under management (as of March 31, 2022).  For nearly 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 generate aggregate annual revenues of approximately $19.7 billion, operate 233 manufacturing facilities in 27 countries, and have approximately 52,000 employees, directly and through joint ventures worldwide (as of March 31, 2022, pro forma for recent acquisitions and exits). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.

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