New York, NY (February 7, 2013) -- 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 adviser 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
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.
