Press Releases

KPS Capital Partners Portfolio Company, North American Breweries, Completes Successful Recapitalization

Sep 23, 2009

New York, NY (September 23, 2009) -- KPS Capital Partners, LP ("KPS") announced today that its portfolio company, North American Breweries, Inc. (“NAB”), has completed a successful recapitalization. NAB has now returned to KPS’ investors a substantial amount of their invested capital, and KPS and management continue to own 100% of NAB’s common stock following the recapitalization.

KPS formed NAB in February 2009 as a North American platform for investments and growth in the beer and malt beverage industries. At that time, KPS also announced NAB’s first three acquisitions: Labatt USA from Interbrew International B.V., a subsidiary of Anheuser-Busch InBev; substantially all of the assets of High Falls Brewing Company, LLC; and a perpetual license for the Seagram’s Cooler Escapes and Seagram’s Smooth brands from Pernod Ricard USA, LLC.

Raquel Palmer, a KPS Partner, said, “NAB’s progress since KPS created the Company is remarkable. As a result of the KPS-sponsored turnaround plan successfully executed by NAB’s new management team, the Company is thriving and profitable, and it has returned a substantial amount of our Fund’s cash investment after only six months. NAB is now solidly capitalized, with a strong balance sheet and the backing of an owner with $2.6 billion of capital under management, and well positioned to pursue a strategy of growth through acquisition.”

Rich Loznyiak, Chief Executive Officer of NAB said, “This recapitalization validates the incredible progress and momentum demonstrated by our new company since its inception. We thank our customers, distributors, suppliers and employees for their contribution to our initial success and look forward to the future. NAB clearly has the capital resources to continue its trajectory through aggressive organic growth and acquisitions, leveraging its brewing capabilities, heritage brands and distribution network.”

Financing for the transaction was provided by a syndicate of banks with RBS Citizens N.A. acting as lead agent and co-book runner, and JP Morgan Chase Bank N.A. acting as co-book runner.

About North American Breweries, Inc.

Headquartered in Rochester, New York, North American Breweries is a national platform for investments and growth in the beer and malt beverage industries. Formed in 2009, North American Breweries owns High Falls Brewing Company, one of the largest and oldest continually operating breweries in the United States, and is the exclusive marketer and seller of Labatt brand beer and Seagram's Coolers in the United States. The company’s brands include the complete line of Labatt beers, including the flagship pilsner Labatt Blue and Labatt Blue Light; the Genesee line and the Dundee Ales & Lagers family, which includes the Original Honey Brown Lager; and Seagram’s Cooler Escapes and Seagram’s Smooth. It is also America's exclusive distributor of several imports, including Steinlager from New Zealand, Toohey's New from Australia, Thwaites from the U.K. and Imperial from Costa Rica; and a manufacturer of beer and other alcoholic and non-alcoholic beverages under contracts on behalf of other companies. North American Breweries is a portfolio company of KPS Capital Partners, LP. Website: www.nabreweries.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 over $12.0 billion of assets under management (as of September 30, 2020).  For over two 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 have aggregate annual revenues of approximately $10.3 billion, operate 158 manufacturing facilities in 22 countries, and have over 32,000 employees, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.

← Back to Press Releases

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, 2020 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.