Car brakes maker Chassis Brakes International, a portfolio company of KPS Capital Partners, has closed its second recapitalization. No financial terms were disclosed. KKR Credit provided the financing for the transaction. Part of the proceeds of the recap will be used by KPS to buy Robert Bosch GmbH’s stake in Chassis Brakes.
PRESS RELEASE .
NEW YORK, July 13, 2017 /PRNewswire/ — KPS Capital Partners, LP (“KPS”) announced today that its portfolio company Chassis Brakes International Group (“Chassis Brakes International” or the “Company”) has completed its second successful recapitalization. The proceeds of the recapitalization will be used to fund a cash distribution to stockholders, refinance the Company’s capital structure, purchase Robert Bosch GmbH’s (“Bosch”) financial interests in the Company, and provide resources for investments in technology and growth.
KPS created Chassis Brakes International in May 2012 to acquire the global automotive foundation brakes business of Bosch in connection with a highly complex global corporate carve-out transaction. Since the acquisition, KPS and management have transformed Chassis Brakes International into an independent, growing and profitable company. Chassis Brakes International has constructed new manufacturing facilities in Poland, China, India and Mexico, launched new industry-leading products, expanded its customer base globally, and invested in new technology while maintaining world-class quality and customer service.
Following the recapitalization, Chassis Brakes International remains conservatively capitalized with the continued support of KPS to pursue organic and strategic growth initiatives.
Michael Psaros, a Managing Partner of KPS, said, “Chassis Brakes International is an excellent example of KPS’ ability to see value where others do not, to buy right and make businesses better. Under KPS’ ownership, Chassis Brakes International has been transformed from a former business unit into an independent, profitable, growing and technology-focused company. This complex carve-out and ambitious turnaround has resulted in Chassis Brakes International’s extraordinary success and growth. Chassis Brakes International has commercialized new industry-leading products, increased its market share, and diversified its customer base and geographic exposure. We thank Chassis Brakes International’s management team and employees around the world for achieving this remarkable milestone.”
Thomas Wünsche, Chief Executive Officer of Chassis Brakes International, said, “Our Company’s successful recapitalization validates the incredible transformation Chassis Brakes International has experienced under KPS’ ownership, and provides the resources to drive our ambitious growth plans. Thanks to our customers’ confidence and our employees’ and suppliers’ commitment, the Company’s momentum and trajectory are extraordinary. In particular, Chassis Brakes International’s brake caliper and braking system position the Company to capitalize on two of the industry’s mega-trends: the electrification of the automobile and ultimate success of autonomous driving.”
Financing for the transaction was provided by KKR Credit.
Gide Loyrette Nouel served as legal counsel to Chassis Brake International with respect to the recapitalization.
About Chassis Brakes International Group
Chassis Brakes International is one of the world’s largest manufacturers of automotive braking solutions. The Company offers a competitive and high-quality range of products, including disc brakes, drum brakes, rotors (disc and drum) and automated parking brakes, which are dedicated to passenger cars and light commercial vehicles. Chassis Brakes International currently employs 5,200 people in 16 countries at 13 manufacturing sites and 11 engineering centers or sales offices in Europe, Asia, South Africa, North and South America. For more information please visit www.chassisbrakes.com.
About KPS Capital Partners, LP
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $5.2 billion of assets under management. 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 $4.3 billion, operate 114 manufacturing facilities in 28 countries, and employ over 41,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.