New York, NY (November 15, 2005) - KPS Special Situations Funds (“KPS”) today announced that Genesis Worldwide II, Inc. (“Genesis II”), a company it jointly owns with Pegasus Partners II, L.P., has sold its GFG subsidiary to Mitsubishi–Hitachi Metals Machinery, Inc. (“MH”), a joint venture of Mitsubishi Heavy Industries, Ltd. and Hitachi, Ltd. GFG is the world’s leading designer and manufacturer of roll coating equipment and lines and electrostatic oilers under the Peabody name.
Walter Stasik, CEO of Genesis II, said, “This transaction is a win-win for Genesis II and MH. We are pleased that GFG is being transferred to an owner best positioned to capitalize on its strengths worldwide. We take great pride in having built GFG into such a successful company. We thank KPS for introducing Genesis II to MH through its relationship with Mitsubishi and for its leading role in completing the transaction.”
“We congratulate Walter Stasik and the Genesis II senior management team on the remarkable turnaround of GFG and on its transformation into a truly global business,” said Michael Psaros, a Managing Principal of KPS. “This transaction is a demonstration of the KPS-Mitsubishi partnership at work. Mitsubishi International Corp. (“MIC”) is an investor in and key strategic partner of KPS. We thank MIC for introducing Genesis II to MH and for the critical role it played helping us complete this complex cross-border transaction. In many respects, the success of this transaction came down to the trust and personal relationships between the Principals of KPS and MIC. We look forward to many similar opportunities to collaborate with MIC in the future.”
Tak Ishikawa, Senior Vice President of Mitsubishi International Corp., said, “Consummation of this complex transaction reflects the cooperative spirit that has evolved between the Principals of KPS and Mitsubishi spanning nine years.”
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 $21.8 billion of assets under management (as of June 30, 2024). 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 $21.6 billion, operate 245 manufacturing facilities in 26 countries, and have approximately 64,000 employees, directly and through joint ventures worldwide (as of June 30, 2024, pro forma for the recent acquisitions of Sport Group and Innomotics which closed on July 8, 2024 and October 1, 2024, respectively). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
