Waupaca Foundry Inc., a portfolio company of KPS Capital Partners, has completed a recapitalization. The recap was funded by a $200 million upsizing of the company’s term loan, and used to fund a $200 million cash distribution to stockholders. KPS acquired the company in June 2012.
KPS Capital Partners, LP (“KPS”) announced today that its portfolio company Waupaca Foundry, Inc. (“Waupaca” or the “Company”) has completed a successful recapitalization. The proceeds of the recapitalization, funded by a $200 million upsizing of the Company’s term loan, were used to fund a $200 million cash distribution to stockholders.
Following the recapitalization, Waupaca remains conservatively capitalized and will have the continued support of KPS, its majority shareholder, to pursue continuous improvement and growth initiatives. KPS is a private equity firm with $2.5 billion of assets under management.
KPS acquired ThyssenKrupp Waupaca, Inc., which was renamed Waupaca Foundry, Inc., from ThyssenKrupp Budd Company, through a newly formed, wholly owned affiliate, in June 2012.
Gary Gigante, Chief Executive Officer of Waupaca, said, “Waupaca is now a thriving independent company under KPS’ ownership, and we are pleased to return capital to our stockholders. This recapitalization validates the successful transformation of Waupaca that was achieved in a very short period of time. Our conservative capital structure and the financial support of our stockholders provide us with the resources to support our customers and grow aggressively, both organically and through acquisitions.”
Financing for the transaction was provided by a syndicate of banks and institutional investors with GE Capital Markets, Inc. acting as Lead Arranger. RBC Capital Markets acted as special advisor to KPS.
About Waupaca Foundry, Inc.
Waupaca Foundry, Inc. (“Waupaca”) the largest iron foundry company in the world, produces gray and ductile iron castings using state-of-the-art technology. Waupaca is North America’s leading supplier of iron castings to the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets. Headquartered in Waupaca, Wisconsin, the Company operates six manufacturing facilities, located in Waupaca, Wisconsin (3), Marinette, Wisconsin, Tell City, Indiana, and Etowah, Tennessee. Waupaca employs approximately 3,700 associates. For more information about Waupaca, please visit www.waupacafoundry.com
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 $2.5 billion of assets under management focused on constructive investing in restructurings, turnarounds and other special situations. The KPS investment strategy targets manufacturing and industrial companies with strong market positions that are going through a period of transition or experiencing operating or financial difficulties. For over two decades, the partners of KPS have worked with the management teams and associates of its portfolio companies to improve operating and financial performance by focusing on cost reduction, efficiency, operational excellence and strategic growth initiatives. KPS Portfolio Companies, as of September 30, 2012, have aggregate annual revenues of approximately $6.8 billion, operate 85 manufacturing plants in 25 countries, and employ over 29,000 associates, directly and through joint ventures worldwide.