New York, NY (September 27, 2007) -- KPS Capital Partners, LP (“KPS”) today announced that its portfolio company, Cloyes Gear and Products, Inc., has sold its European business, Cloyes Europe GmbH, to Sumitomo Electric Industries, Ltd. and its wholly owned subsidiary, Sumitomo Electric Sintered Alloy, Ltd. Cloyes Europe is located in Oberseifersdorf, Zittau, Saxony, Germany and produces powdered metal components for the automotive industry in Europe.
This transaction represents the fourth successful sale of a KPS portfolio company or a business owned by a portfolio company to a Japanese strategic acquirer. In November 2005, Genesis Worldwide II, Inc., a former KPS portfolio company, sold its GFG subsidiary to Mitsubishi Hitachi Heavy Metals Machinery (Japan). In May 2006, KPS sold Ashcroft, Inc. to Nagano Keiko Co., Ltd. (Japan). In October 2006, Hephaestus Holdings, Inc., a current KPS portfolio company, sold a minority equity ownership interest to Mitsubishi Corporation (Japan).
This transaction is also the second successful turnaround and sale of a German business by KPS within the past year. In November 2006, KPS sold its portfolio company, Ebro Electronics GmbH, Inc., to Nova Analytics Corporation.
About Cloyes Gear and Products, Inc.
Cloyes Gear and Products, Inc. is a leading supplier of timing systems and components for automotive engines and enjoys a dominant market position in the North American automotive aftermarket under the Cloyes® and Dynagear® brand names. Cloyes is one of only four global OE suppliers that provides customers with the design, engineering, manufacturing and supply chain management for the timing system in engines. Cloyes is also one of the few global suppliers that has demonstrated the expertise required to manufacture components used in growing markets for variable valve timing technology. Cloyes operates four manufacturing facilities in the United States and three distribution/system assembly facilities in North America. www.cloyes.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 $21.8 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.
