New York, NY (July 23, 2000) -- KPS Special Situations Fund, L.P. announced today that it has made a controlling investment in United Road Services, Inc. (OTC BB "URSI"). Approval of this transaction was received on July 20, 2000 at a special meeting of the Company's stockholders in New York City. Holders of approximately 81% of the shares of common stock that were voted, were in favor of the transaction.
KPS invested $25 million and GE Capital invested $2 million in exchange for participating convertible preferred stock issued by the Company, collectively convertible into approximately 75% of the Company's common stock. In connection with the transaction, KPS has the right to designate a majority of the Company's Board of Directors as long as KPS continues to own specified amounts of preferred stock. KPS arranged a new $100 million credit facility for the Company agented by GE Capital.
Formed in July 1997 and headquartered in Albany, NY, United Road Services (www.unitedroad.com), is a leading national provider of a broad range of services including towing, impounding and storing motor vehicles, conducting lien sales and auctions of abandoned vehicles and transporting new and used vehicles and heavy construction equipment. United Road Services has a network of 40 divisions located in 20 states.
KPS is excited that the Company's senior management team will continue to be led by Mr. Gerald Riordan, Chief Executive Officer. Mr. Riordan commented, "I am pleased with the completion of the KPS transaction and the refinancing agented by GE Capital. Our management team and employees are looking forward to working with KPS and our new Board of Directors to return United Road Services to profitable growth."
KPS Special Situations Fund. L.P., founded in 1998 by Eugene Keilin, Michael Psaros and David Shapiro, is a New York City based private equity fund with over $210 million of committed capital that focuses on constructive investing in restructurings, turnarounds and other special situations.
Michael Psaros, a principal of KPS, added, "This transaction marks a new beginning for United Road Services that will allow the Company to realize its potential as a premier national provider of transport, towing and recovery services. We have great confidence in the Company's senior management team and believe that our equity investment, coupled with a new credit facility, will provide the Company with the capital resources needed to execute its turn-around plan. We are excited about this investment and look forward to working with the Company's employees to complete the integration of the Company's assets, deliver superior service to our customers and maximize value for the Company's stockholders."
The principals of the KPS Fund have restructured numerous companies in basic manufacturing and service industries. In addition to United Road Services, KPS currently owns a controlling interest in Blue Ridge Paper Products Inc., a leading manufacturer of envelope grade paper and coated board used in liquid packaging; Blue Heron Paper Company, a West Coast manufacturer of newsprint and related paper products; and DeVlieg-Bullard, Inc., a manufacturer of OEM machine tools, parts and services.
This release contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. Readers should carefully review the risk factors described in the documents the Company files from time to time with the Securities and Exchange Commission.
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.
