New York, NY (May 15, 2012) -- KPS Capital Partners, LP ("KPS") announced today that, through a newly formed company, W Foundry International, Inc. and its affiliates, it has entered into definitive agreements to acquire ThyssenKrupp Waupaca, Inc. (“Waupaca” or the “Company”) from ThyssenKrupp Budd Company. Financial terms of the transaction were not disclosed.
Waupaca is the largest iron foundry company in the world and produces gray and ductile iron castings using state-of-the-art technology. Waupaca is North America’s leading supplier of iron castings to the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets. Headquartered in Waupaca, Wisconsin, the Company operates six manufacturing facilities, located in Wisconsin, Indiana, and Tennessee. The Company employs approximately 3,500 people.
David Shapiro, a KPS Managing Partner, said, “We are very excited to create an independent Waupaca Foundry. Waupaca is the largest company in its industry worldwide with the leading North American market share in each of its diverse end markets and strong customer relationships that have been developed over decades of partnership. The Company possesses world-class assets, unrivaled scale and scope, industry leading quality and service, and a commitment to investing in state-of-the-art technology and process development. We look forward to working with Chief Executive Officer Gary Gigante, his management team and all of Waupaca’s employees to build on this great platform by strategically expanding into regions where Waupaca’s key customers are growing. The combination of the Company’s unique strengths and the financial resources of KPS will provide the foundation for Waupaca’s future growth, both organically and through acquisitions in North America and around the world.”
Gary Gigante, President and Chief Executive Officer of Waupaca, said “We are thrilled to become an independent company under KPS’ ownership. KPS’ commitment to manufacturing excellence and enthusiastic support of our extraordinary growth trajectory and globalization initiatives positions our Company for continued success. We look forward to continuing to provide our customers with industry leading quality, customer service and innovation.”
The closing of the transaction is expected during the second quarter of 2012 and is subject to customary closing conditions. ThyssenKrupp Waupaca, Inc. will be renamed Waupaca Foundry, Inc. upon closing of the transaction.
Perella Weinberg Partners, L.P. acted as financial advisor and Paul, Weiss, Rifkind, Wharton and Garrison LLP served as legal counsel to KPS and W Foundry International, Inc. and its affiliates. Financing for the transaction will be provided by a syndicate of banks and institutional investors with GE Capital Markets, Inc., RBC Capital Markets and Wells Fargo Capital Finance acting as Lead Arrangers.
About ThyssenKrupp Waupaca, Inc.
ThyssenKrupp Waupaca, Inc., the largest independent iron foundry in the world, produces gray and ductile iron castings using state-of-the-art technology. Markets served include automotive, truck, agriculture, construction, hydraulics and commercial vehicles. With headquarters and three plants in Waupaca, Wisconsin and one in Marinette, Wisconsin, as well as plants in Tell City, Indiana, and Etowah, Tennessee, Waupaca employs approximately 3,500.
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.
