New York, NY (October 27, 2011) -- KPS Capital Partners, LP ("KPS") announced today that it has entered into definitive agreements to acquire American & Efird LLC (“A&E” or the definitive agreements to acquire American & Efird LLC (“A&E” or the “Company”) from Ruddick Corporation (NYSE: RDK) (“Ruddick”) through a newly-formed affiliate, A&E Global, for $180.0 million, subject to certain post-closing adjustments.
A&E, headquartered in Mt. Holly, North Carolina, is the largest U.S. manufacturer and the world's second-largest manufacturer and distributor of premium quality industrial sewing thread, embroidery thread and technical textiles. A&E thread is used by producers of apparel, automotive components, home furnishings, medical supplies, footwear and certain industrial products. A&E owns or operates 23 plants and employs 11,000 associates around the world directly or in partnership with joint venture partners.
Michael Psaros, a KPS Managing Partner, said, “We are excited to create a new, independent A&E Global. Rarely have we seen a North American enterprise so successfully globalize by capitalizing on its numerous competitive advantages and following its customers abroad, while still retaining its core values. The Company is ideally positioned to benefit from the growth of the world’s fastest growing markets. A&E’s exceptional high-quality product offering, superior customer service, global footprint, operational and technical expertise and customer base, together with financial resources provided by KPS, will accelerate A&E's success and growth in the global marketplace.”
Fred Jackson, Chief Executive Officer of A&E, said, “Our management team and associates are very excited to be part of the KPS portfolio of companies. KPS uniquely recognized the true value of our business created over decades, especially the superior growth and momentum achieved in China, India and Greater Asia. We are impressed by KPS’s commitment to manufacturing excellence, which will enable us to continue to provide our customers with industry-leading products and superior service. We expect that our strong balance sheet and access to KPS’s financial resources will enable us to continue our global growth strategy.”
Completion of the transaction is expected in the fourth quarter of 2011 and is subject to customary closing conditions.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS and its affiliates.
About American & Efird LLC
American & Efird ("A&E") is one of the world's largest global manufacturers and distributors of industrial sewing thread, embroidery thread and technical textiles, produced from natural and synthetic fibers. Producers of apparel, automotive components, home furnishings, medical supplies and footwear rely on A&E industrial sewing thread to manufacture their products.
A&E, headquartered in Mt. Holly, North Carolina, is the largest U.S. manufacturer and the world's second-largest manufacturer and distributor of premium quality industrial sewing thread, embroidery thread and technical textiles. A&E thread is used by producers of apparel, automotive components, home furnishings, medical supplies, footwear and certain industrial products. A&E owns or operates 23 plants and employs 11,000 associates around the world directly or in partnership with joint venture partners.
Customers select A&E as the preferred choice for industrial sewing thread, embroidery thread and technical textiles because of A&E’s dedication to providing its customers with the finest products and services, at the highest quality, delivered globally. Learn more about A&E at www.amefird.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.
