New York, NY (November 14, 2006) -- KPS Special Situations Funds (“KPS”) announced today that it has entered into a definitive agreement to sell its portfolio company, AmeriCast Technologies, Inc. (“AmeriCast”), to a fund managed by Castle Harlan, Inc. (“Castle Harlan”). The transaction is valued at $110 million.
The transaction represents the sixth sale of a portfolio company by KPS this year, and the tenth liquidity event involving an investment of KPS Special Situations Fund II.
Michael Psaros, a Managing Principal of KPS, stated, “The success of AmeriCast is another validation of our investment strategy. We take pride in sponsoring the transformation of AmeriCast into the leader of its industry. We congratulate Tom Armstrong, AmeriCast’s Chief Executive Officer, the company’s management team and all of its employees for their collective accomplishments.”
Mr. Armstrong added, “We enjoyed the collaboration with KPS that resulted in significantly improving and growing AmeriCast. KPS’ emphasis on creating value through manufacturing excellence made it the right owner at the right time for our company.”
Mr. Psaros concluded, “The sale of AmeriCast to a premier growth investor like Castle Harlan is a logical progression for AmeriCast. We expect that AmeriCast will have much success under Castle Harlan’s ownership.”
CIBC World Markets acted as the financial advisor to AmeriCast.
The transaction is expected to be completed in the fourth quarter of 2006.
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 $21.4 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.
