KPS Capital Partners Buys ThyssenKrupp Waupaca

KPS Capital Partners, via the newly formed company W Foundry International, has agreed to acquire ThyssenKrupp Waupaca. Terms of the deal were not released. ThyssenKrupp Waupaca is the largest iron foundry company in the world and produces gray and ductile iron castings using state-of-the-art technology, the firm said in a written release.


KPS Capital Partners, LP (“KPS”) announced today that, through a newly formed company, W Foundry International, Inc. and its affiliates, it has entered into definitive agreements to acquire ThyssenKrupp Waupaca, Inc. (“Waupaca” or the “Company”) from ThyssenKrupp Budd Company. Financial terms of the transaction were not disclosed.


Waupaca is the largest iron foundry company in the world and 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 Wisconsin, Indiana, and Tennessee. The Company employs approximately 3,500 people.


David Shapiro, a KPS Managing Partner, said, “We are very excited to create an independent Waupaca Foundry. Waupaca is the largest company in its industry worldwide with the leading North American market share in each of its diverse end markets and strong customer relationships that have been developed over decades of partnership. The Company possesses world-class assets, unrivaled scale and scope, industry leading quality and service, and a commitment to investing in state-of-the-art technology and process development. We look forward to working with Chief Executive Officer Gary Gigante, his management team and all of Waupaca’s employees to build on this great platform by strategically expanding into regions where Waupaca’s key customers are growing. The combination of the Company’s unique strengths and the financial resources of KPS will provide the foundation for Waupaca’s future growth, both organically and through acquisitions in North America and around the world.”


Gary Gigante, President and Chief Executive Officer of Waupaca, said “We are thrilled to become an independent company under KPS’ ownership. KPS’ commitment to manufacturing excellence and enthusiastic support of our extraordinary growth trajectory and globalization initiatives positions our Company for continued success. We look forward to continuing to provide our customers with industry leading quality, customer service and innovation.”


The closing of the transaction is expected during the second quarter of 2012 and is subject to customary closing conditions. ThyssenKrupp Waupaca, Inc. will be renamed Waupaca Foundry, Inc. upon closing of the transaction.


Perella Weinberg Partners, L.P. acted as financial advisor and Paul, Weiss, Rifkind, Wharton and Garrison LLP served as legal counsel to KPS and W Foundry International, Inc. and its affiliates. Financing for the transaction will be provided by a syndicate of banks and institutional investors with GE Capital Markets, Inc., RBC Capital Markets and Wells Fargo Capital Finance acting as Lead Arrangers.


About ThyssenKrupp Waupaca, Inc.


ThyssenKrupp Waupaca, Inc., the largest independent iron foundry in the world, produces gray and ductile iron castings using state-of-the-art technology. Markets served include automotive, truck, agriculture, construction, hydraulics and commercial vehicles. With headquarters and three plants in Waupaca, Wisconsin and one in Marinette, Wisconsin, as well as plants in Tell City, Indiana, and Etowah, Tennessee, Waupaca employs approximately 3,500.


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 $2.8 billion of assets under management focused on constructive investing in corporate carve-outs, restructurings and other special situations. KPS has executed highly complex corporate carve-out transactions on a global basis, and has acquired businesses from numerous Global Fortune 500 companies. 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 nearly 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 have aggregate annual revenues of $5.0 billion, operate 73 manufacturing plants in 12 countries, and employ over 23,000 associates, directly and through joint ventures worldwide.