Press Releases

KPS Capital Partners Completes Controlling Investment in Parent of Motor Coach Industries International

Sep 20, 2010

Largest North American Manufacturer of Intercity Highway Coaches

New York, NY (September 20, 2010) -- KPS Capital Partners, LP ("KPS") announced today the completion of a controlling investment, through an affiliate, in MCII Holdings, Inc., the parent company of Motor Coach Industries International, Inc. (“MCI” or the “Company”). The transaction is the result of a multi-stakeholder recapitalization of MCII Holdings sponsored by KPS. Financial terms of the transaction were not disclosed.

MCI is the largest manufacturer of intercity highway coaches in North America. The Company is the only “Buy America” compliant coach manufacturer in the industry and the premier motor coach supplier to North America’s largest transit agencies. In addition, MCI is the leading supplier to private sector coach operators, including charter and tour, line-haul and scheduled-service operators. The MCI D-Series is the number one selling coach of all time and the MCI J-Series is the best selling coach of the last decade. The Company has the largest installed fleet of motor coaches in North America. MCI is also the industry’s leading provider of aftermarket parts and service.

Jay Bernstein, a Partner of KPS, said, “MCI is universally recognized as the premium coach brand and the leading participant in the coach bus industry with a reputation for quality and durability that is second to none. We are very excited to partner with the Company’s 1,500 employees in the U.S. and Canada to manufacture products in North America for North American customers, and to continue to provide MCI’s customers with the highest levels of quality and service. As a result of the KPS-sponsored recapitalization, MCI is now conservatively capitalized and has the financial resources to fund its continued growth and investment in industry-leading innovation and technology.”

KPS has considerable experience in the bus sector through its former ownership of New Flyer Industries, Ltd. (“New Flyer”), the leading manufacturer of transit buses in North America. Under KPS’s ownership, New Flyer experienced significant growth in revenue and profitability, and became the industry leader in quality, delivery and customer service.

Miller Buckfire & Co., LLC served as financial advisor and 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, Inc. (“MCI”) is the largest manufacturer of intercity highway coaches for the tour, charter, line-haul, schedule service, commuter transit and conversion markets in the U.S. and Canada. The company operates two manufacturing facilities in Winnipeg, Manitoba and Pembina, North Dakota, as well as seven sales centers and eight service centers in North America. MCI is also the industry’s leading supplier of aftermarket parts for most bus makes and models. Headquartered in Schaumburg, Illinois, MCI has over 1,500 employees. Please visit www.mcicoach.com for more information.

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.

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