KPS Capital Partners Acquires the Assets of United Copper Industries, Inc
New York, NY (September 28, 2011) -- KPS Capital Partners, LP ("KPS") announced today the acquisition of substantially all of the assets of United Copper Industries, Inc. (the “Seller”), an affiliate of Organización IUSA, S.A. de C.V. (“IUSA”), through a newly formed company (“UCI” or “United Copper”). Financial terms of the transaction were not disclosed.
UCI is a leading manufacturer and distributor of building wire and cable used in the construction of industrial, residential and commercial buildings in North America. United Copper manufactures all major types of 600-volt building wire and cable, including Thermoplastic High Heat Resistant Nylon (“THHN”) wire, Thermoplastic Flexible Fixture Nylon (“TFFN”) wire, Non-Metallic (“NM-B”) cable, Underground Feeder (“UF-B”) cable, Metal-Clad (“MC”) cable and Bare wire. All UCI products are Underwriters Laboratory approved and listed. UCI operates a state-of-the-art, vertically integrated environmentally friendly manufacturing facility located in Denton, Texas, and sells its products through prominent national, regional and local electrical distributors across the country.
David Shapiro, a KPS Managing Partner, said, “We are very excited to acquire the assets of United Copper, which we believe represents an exceptional investment opportunity. The combination of UCI’s low-cost manufacturing base, first-rate management team, operational and technical expertise, and strong customer relationships, alongside the financial resources provided by KPS, will allow UCI to achieve its full potential as an industry leader. Our investment in United Copper is just the first step in the creation of a larger enterprise. We intend to aggressively grow UCI both organically and through acquisition.”
Andy Blanchard, Chief Executive Officer of UCI, said, “UCI is thrilled to become an independent, U.S.-based company owned by KPS, which recognizes the true value of our business. We are very impressed by KPS’s commitment to manufacturing excellence and to supporting our growth. With access to KPS’ capital and our strong balance sheet, we will continue to provide our customers with industry-leading products and superior service, and expect to be an industry consolidator by acquiring companies in our core and complementary product areas.”
Financing for the transaction was provided by GE Capital, Corporate Finance. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS and its affiliates.
About United Copper
UCI is a leading manufacturer and distributor of building wire and cable used in the construction of industrial, residential and commercial buildings in the United States and Canada. United Copper manufactures all major types of 600-volt building wire and cable used in both residential and commercial construction, including Thermoplastic High Heat Resistant Nylon (“THHN”) wire, Thermoplastic Flexible Fixture Nylon (“TFFN”) wire, Non-Metallic (“NM-B”) cable, Underground Feeder (“UF-B”) cable, Metal-Clad (“MC”) cable and Bare wire. Building wire serves as the essential conduit to carry electrical current to all external uses of power in a building or dwelling. All UCI products are Underwriters Laboratory approved and listed. UCI operates a state-of-the-art, vertically integrated manufacturing facility located in Denton, Texas. UCI is a leader in green technology by manufacturing lead-free products and powering its facility with over 40% renewable energy. United Copper sells its products through prominent national, regional and local electrical distributors across the country. Additional information regarding UCI and its products can be found at www.unitedcopper.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 $21.8 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.
