New York, NY (January 18, 2007) -- KPS Capital Partners, LP ("KPS") announced today that a newly formed affiliate, Attends Healthcare, Inc. (“Attends Healthcare”), has acquired PaperPak Products, Inc. (“PaperPak”) from Attends Healthcare Investments Ltd. Financial terms of the transaction were not disclosed.
PaperPak is a leading manufacturer and distributor of a complete line of adult incontinence products for the North American marketplace that are sold primarily under the Attends brand name. PaperPak primarily serves the non-retail sectors with a focus on the acute care, long-term care, and rapidly growing home healthcare sectors. Headquartered in Greenville, North Carolina, PaperPak operates two manufacturing facilities located in North Carolina and California. (www.paperpak.com and www.attends.com)
Michael Fagan will continue to serve as Chief Executive Officer under KPS' ownership. Mr. Fagan and his management team will implement a business plan developed in partnership with KPS, focused on improving operations and aggressively growing the company both organically and through acquisition. The KPS transaction will provide access to substantial capital that will be invested in the further development of the Attends brand name.
Raquel Palmer, a Partner of KPS, said "We are very excited to work with Michael Fagan and his team at PaperPak to capitalize on the enormous growth opportunity presented by the adult incontinence market. Attends is the recognized leader in the industry for product quality, innovation and technology, with a brand name and franchise that cannot be replicated. We are confident that under our ownership, with access to our expertise and capital for growth, Attends will build upon the exceptional foundation that exists today and achieve its full potential.”
Mr. Fagan said, "We are thrilled to establish this new enterprise in partnership with KPS. We look forward to aggressively growing the business by building on Attends’ heritage of superior user comfort and care. Additionally, we plan to accelerate the introduction of innovative personal care solutions focused on providing more convenience and value to our customers. This transaction furthers the tremendous momentum of the company and is a very positive event for our customers, vendors and employees."
This transaction is the third acquisition by KPS of a non-core North American business divested by a European seller.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS in the transaction.
PaperPak was represented in the transaction by KGI Capital Partners, a division of Kibel Green Inc., and Hogan & Hartson, LLP.
About KPS Capital Partners
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.4 billion of assets under management (as of December 31, 2023). For over three 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 generate aggregate annual revenues of approximately $20.3 billion, operate 222 manufacturing facilities in 26 countries, and have approximately 48,000 employees, directly and through joint ventures worldwide (as of December 31, 2023). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
