New York, NY (August 12, 2015) — KPS Capital Partners, LP (“KPS”) announced today that its portfolio company Electrical Components International, Inc. (“ECI” or the “Company”) has completed a successful recapitalization. The proceeds of the recapitalization, funded by a $50 million upsizing of the Company’s term loan, were used to fund a $50 million cash distribution to stockholders.
ECI remains conservatively capitalized and has the continued support of KPS to pursue organic and strategic growth initiatives in North America and abroad. KPS is a private equity firm with approximately $5.6 billion of assets under management.
David Webster, Chief Executive Officer of ECI, said, “In ECI’s first year under KPS’ ownership, performance has exceeded our expectations. This recapitalization validates ECI’s significant strategic accomplishments under KPS ownership, and we are pleased to return capital to our stockholders. Over the past year, ECI has launched a new world-class, low-cost manufacturing facility in Morocco, won significant new business in both appliance and specialty-industrial end markets, and integrated the operations of Global Harness Systems into its global manufacturing footprint. ECI’s conservative capital structure and the financial support of our stockholders will allow us to continue to grow aggressively. We remain committed to deploying additional capital and resources in order to ensure total customer satisfaction, and thank our customers, suppliers and employees for their contributions to our success.”
Financing for the transaction was provided by a syndicate of banks and institutional investors with BofA Merrill Lynch acting as Lead Arranger.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to ECI with respect to the recapitalization.
About Electrical Components International, Inc.
ECI was founded in the 1950s and is headquartered in St. Louis, Missouri with 14 manufacturing facilities, 14 distribution centers and sales and engineering offices located in North America, South America, Asia, Europe and Africa. ECI is the leading global manufacturer and marketer of wire harnesses and provider of value-added assembly services for the home appliance industry and is a leading provider of wire harnesses to a diverse range of end markets. ECI has over 800 customers globally and its products can be found in a wide variety of electronic and electro-mechanical applications, including home appliances, agriculture and construction, heating, ventilation and air conditioning (HVAC), specialty transportation, automotive, commercial appliance and commercial electronics. ECI employs over 14,000 associates worldwide. For more information, please visit www.ecintl.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.
