Distributes Dividend to Shareholder and Raises Committed Acquisition Facility
New York, NY (September 7, 2005) -- KPS Special Situations Fund II (“KPS”) announced today that its portfolio company, AmeriCast Technologies, Inc. (“AmeriCast”), completed a $95 million recapitalization. The proceeds of the recapitalization refinanced AmeriCast’s debt, funded a $26.1 million distribution to AmeriCast stockholders, and provided the Company with $25 million of committed financing to fund future acquisitions. KPS and Management continue to own 100% of AmeriCast’s common stock after the recapitalization.
KPS formed AmeriCast in December 2003 to purchase certain assets of Atchison Casting Corp. out of Chapter 11 bankruptcy for approximately $40 million, investing $15 million of equity to capitalize the new company. Since its creation, AmeriCast has achieved remarkable growth in revenue, cash flow and profits.
Tom Armstrong, Chief Executive Officer of AmeriCast, said, “This transaction is a tribute to KPS for believing in a new company operating in a tough industry and requiring a serious turnaround. We are especially grateful to Mike Psaros, David Shapiro, and Gene Keilin, the Managing Principals of KPS, for pulling the trigger on the initial investment and for their constant support throughout our turnaround. Mike’s leadership was particularly instrumental in completing this recapitalization. I would also like to thank our employees, customers and suppliers for their support. We look forward to continuing to provide quality products and services to our customers and to drive superior investment returns for our stockholders. Our future is very bright.”
Michael Psaros, a Managing Principal of KPS said, “We congratulate Tom Armstrong, AmeriCast’s CEO, and all of the employees of AmeriCast who accomplished a turnaround of the Company in a short period of time. Tom and his team have successfully created one of the largest steel casting companies in the U.S. and substantial equity value for our Limited Partners. As a result of the KPS sponsored turnaround plan, the Company’s cash flow has almost tripled under our ownership. AmeriCast is now both strategically positioned and properly capitalized for continued growth. We would like to thank the United Steelworkers of America for introducing KPS to the AmeriCast investment opportunity two years ago.”
Jefferies & Company, Inc. acted as placement agent on the financing.
About AmeriCast Technologies, Inc.
AmeriCast Technologies, Inc. (www.americasttech.com) is a world leader in the design, manufacture and supply of highly-engineered steel and iron sand castings, machined components and assemblies. AmeriCast casts large and difficult-to-manufacture parts and is a critical supplier to Fortune 50 manufacturers in the locomotive, mass transit, mining, construction and heavy-duty truck industries. The Company operates five business units, including: Atchison Steel Castings based in Atchison, Kansas and St. Joseph, Missouri; Amite Foundry based outside of New Orleans, Louisiana; Prospect Foundry based in Minneapolis, Minnesota; London Precision Machining based in London, Ontario; and ACC Global Services.
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.
