New York, NY (June 17, 2013) -- KPS Capital Partners, LP (“KPS”) announced today that its portfolio company, Waupaca Foundry, Inc. (“Waupaca” or the “Company”), completed its second successful recapitalization. The proceeds of the recapitalization, funded by a $125 million upsizing of the Company’s term loan, were used to fund a $125 million cash distribution to stockholders.
Following the recapitalization, Waupaca remains conservatively capitalized and has the continued support of KPS, its majority shareholder, to pursue continuous improvement and growth initiatives.
KPS acquired ThyssenKrupp Waupaca, Inc., which was renamed Waupaca Foundry, Inc., from ThyssenKrupp Budd Company, through a newly formed, wholly owned affiliate, in June 2012.
In February 2013, Waupaca completed its first recapitalization, the proceeds of which were used to fund a $200 million cash distribution to stockholders. As a result of the two recapitalizations, Waupaca has distributed $325 million of cash to its stockholders since its creation.
Financing for the transaction was provided by a syndicate of banks and institutional investors with GE Capital Markets, Inc. acting as Lead Arranger.
About Waupaca Foundry, Inc.
Waupaca, the largest iron foundry company in the world, 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 Waupaca, Wisconsin (3), Marinette, Wisconsin, Tell City, Indiana, and Etowah, Tennessee. Waupaca employs approximately 3,700 associates. For more information about Waupaca, please visit www.waupacafoundry.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 $21.4 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.
