KPS Capital Partners, LP (“KPS”) today announced that its portfolio company American & Efird (“A&E” or the “Company”) signed definitive agreements to acquire majority ownership of Vardhman Yarns and Threads Limited (“Vardhman Yarns and Threads”) from its joint venture partner, Vardhman Textiles Limited (“Vardhman Textiles”). Upon completion of the transaction, A&E will own 89% of the joint venture and Vardhman Textiles will own the other 11%. The transaction has been approved by A&E and Vardhman Textiles, but remains subject to approval from the Competition Commission of India and other customary closing conditions.
Vardhman Yarns and Threads is India’s second–largest manufacturer and distributor of premium quality industrial and consumer sewing thread. Vardhman Yarns and Threads generated revenue of approximately $110 million in FY2015-2016, operates 5 manufacturing facilities, employs over 4,500 associates and sells some of the most-widely recognized industrial sewing thread brands in India.
Les Miller, Chief Executive Officer of A&E, said, “The acquisition of Vardhman Yarns and Threads accelerates A&E’s continued global growth and diversification. Our long-standing blue-chip customer base, including leading global brands, multinational corporations and regional manufacturers, rely on A&E as a mission-critical supply chain partner. This acquisition further enhances our demonstrated ability to provide customers with the highest-quality thread and superior service around the world. Vardhman Yarns and Threads’ excellent reputation, world-class operations and leading position in the Indian market will enable A&E to more fully benefit from both fast-growing domestic demand for high-quality products in India and increasing international demand for exports from India. A&E will invest significant capital and resources into Vardhman Yarns and Threads to continue to ensure the highest levels of product quality, environmental sustainability, technological innovation and customer service.
We thank Vardhman Textiles for their continued valuable contributions to Vardhman Yarns and Threads’ success. The strategic partnership with Vardhman Textiles has been important to strengthening Vardhman Yarn and Threads’ leadership position in India and helped accelerate its growth trajectory. We look forward to our continued collaboration with Vardhman Textiles.”
Michael Psaros, a Managing Partner of KPS, said, “Under KPS ownership, A&E has successfully completed five highly synergistic acquisitions that helped the Company strengthen its world-class strategic global manufacturing, distribution and service platform that provides the Company with a unique competitive advantage. A&E will continue to aggressively expand into adjacent geographies, products and end-markets around the world. A&E’s global reach, product diversity, world-class environmental sustainability practices, and conservative capital structure enable the Company to continue its momentum and success. KPS thanks, in our opinion, the most accomplished management team in the industry, along with all of A&E’s associates around the world, for almost doubling the size of the Company in such a short time period. We look forward to continuing to support A&E’s growth, both organically and through acquisition and joint venture opportunities.”
A&E expects to complete the transaction in the summer of 2016.
McGuireWoods LLP and J.Sagar Associates served as legal counsel to A&E and its affiliates.
About American & Efird
A&E is the largest U.S. manufacturer and the world’s second-largest manufacturer and distributor of premium quality industrial and consumer sewing thread, embroidery thread and technical textiles. Producers of apparel, automotive components, home furnishings, personal care, hygiene, footwear and a diverse range of industrial products rely on A&E industrial sewing thread to manufacture their products. Customers select A&E as the preferred choice for industrial sewing thread, embroidery thread and technical textiles because of A&E's dedication to providing its customers with the finest products and services, at the highest quality, delivered globally. Through its global network, A&E's products are manufactured in 23 countries, distributed in 50 countries and sold in over 100 countries. In addition to A&E's steadfast commitment to superior quality and customer service, A&E is a recognized industry leader in environmental sustainability and corporate social responsibility, and operates its global facilities with the utmost regard for the safety and health of its associates employed worldwide. A&E owns or operates 27 manufacturing facilities and employs over 10,000 associates around the world directly or in partnership with joint venture partners. For more information, please visit www.amefird.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.
