Mark Semer/Joe Kuo 212.521.4800
CAPITAL PARTNERS COMPLETES CONTROLLING INVESTMENT IN PARENT OF MOTOR
COACH INDUSTRIES INTERNATIONAL
North American Manufacturer of Intercity Highway Coaches
(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.
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
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
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.
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
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 $2.6 billion of committed capital focused on constructive
investing in restructurings, turnarounds and other special situations.
KPS has created new companies to purchase operating assets out of
bankruptcy; established stand-alone entities to operate divested assets;
and recapitalized highly leveraged public and private companies. The KPS
investment strategy targets companies with strong franchises that are
experiencing operating and financial problems. KPS invests its capital
concurrently with a turnaround plan predicated on cost reduction, capital
investment and capital availability. Typically, the KPS turnaround plan
is accompanied by a financial restructuring of the company's liabilities.
The KPS investment strategy and portfolio companies are described in
detail at the firm's website: www.kpsfund.com