KPS Capital Partners has recapitalized North American Breweries Inc., just a few months after forming the company as an acquisition platform. RBS Citizens served as lead agent and co-book runner for the financing sundicate, while the other co-book runner was JP Morgan Chase Bank.
KPS Capital Partners, LP (“KPS”) announced today that its portfolio company, North American Breweries, Inc. (“NAB”), has completed a successful recapitalization. NAB has now returned to KPS’ investors a substantial amount of their invested capital, and KPS and management continue to own 100% of NAB’s common stock following the recapitalization.
KPS formed NAB in February 2009 as a North American platform for investments and growth in the beer and malt beverage industries. At that time, KPS also announced NAB’s first three acquisitions: Labatt USA from Interbrew International B.V., a subsidiary of Anheuser-Busch InBev; substantially all of the assets of High Falls Brewing Company, LLC; and a perpetual license for the Seagram’s Cooler Escapes and Seagram’s Smooth brands from Pernod Ricard USA, LLC.
Raquel Palmer, a KPS Partner, said, “NAB’s progress since KPS created the Company is remarkable. As a result of the KPS-sponsored turnaround plan successfully executed by NAB’s new management team, the Company is thriving and profitable, and it has returned a substantial amount of our Fund’s cash investment after only six months. NAB is now solidly capitalized, with a strong balance sheet and the backing of an owner with $2.6 billion of capital under management, and well positioned to pursue a strategy of growth through acquisition.”
Rich Loznyiak, Chief Executive Officer of NAB said, “This recapitalization validates the incredible progress and momentum demonstrated by our new company since its inception. We thank our customers, distributors, suppliers and employees for their contribution to our initial success and look forward to the future. NAB clearly has the capital resources to continue its trajectory through aggressive organic growth and acquisitions, leveraging its brewing capabilities, heritage brands and distribution network.”
Financing for the transaction was provided by a syndicate of banks with RBS Citizens N.A. acting as lead agent and co-book runner, and JP Morgan Chase Bank N.A. acting as co-book runner.
About North American Breweries, Inc.
Headquartered in Rochester, New York, North American Breweries is a national platform for investments and growth in the beer and malt beverage industries. Formed in 2009, North American Breweries owns High Falls Brewing Company, one of the largest and oldest continually operating breweries in the United States, and is the exclusive marketer and seller of Labatt brand beer and Seagram’s Coolers in the United States. The company’s brands include the complete line of Labatt beers, including the flagship pilsner Labatt Blue and Labatt Blue Light; the Genesee line and the Dundee Ales & Lagers family, which includes the Original Honey Brown Lager; and Seagram’s Cooler Escapes and Seagram’s Smooth. It is also America’s exclusive distributor of several imports, including Steinlager from New Zealand, Toohey’s New from Australia, Thwaites from the U.K. and Imperial from Costa Rica; and a manufacturer of beer and other alcoholic and non-alcoholic beverages under contracts on behalf of other companies. North American Breweries is a portfolio company of KPS Capital Partners, LP. Website: www.nabreweries.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 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.