New York, NY (July 20, 2015) -- KPS Capital Partners, LP (“KPS”) announced today that its portfolio company American & Efird Global (“A&E” or the “Company”) has completed a successful recapitalization. A&E raised approximately $275 million of financing, including a $65 million cash flow revolving credit facility and an approximately $210 million term loan. The proceeds of the recapitalization were used to refinance outstanding debt, to fund an $80 million cash distribution to stockholders and to support the Company’s continued growth.
Following the recapitalization, A&E remains conservatively capitalized with the continued support of its controlling stockholder, KPS, a private equity firm with approximately $5.6 billion of assets under management.
Fred Jackson, Chief Executive Officer of A&E, said, “A&E’s successful recapitalization validates the incredible transformation A&E has experienced under KPS ownership, and we are pleased to return capital to our stockholders. The company’s momentum and trajectory are extraordinary. Under KPS ownership, A&E has purchased Gütermann, one of the world’s leading manufacturers and distributors of premium, high-quality sewing thread products for consumer and industrial applications, as well as full control of several of the Company’s joint ventures located throughout Asia. Our conservative capital structure and the financial support of our stockholders provide us with the resources to support the Company as it continues to successfully expand into adjacent geographies, products and end-markets, both organically and through acquisitions. Following the recapitalization, A&E remains committed to providing the highest levels of product quality, environmental sustainability, technological innovation and customer service. We thank our customers, suppliers and employees for their contributions to our success.”
Financing for the recapitalization was provided by a group of lenders with Merrill Lynch, Pierce, Fenner & Smith Incorporated serving as Joint Left Lead Arranger and Bookrunner, and HSBC Bank USA, N.A., J.P. Morgan Securities LLC and PNC Capital Markets LLC acting as Joint Right Lead Arrangers and Joint Bookrunners.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to A&E with respect to the recapitalization.
About American & Efird Global
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 for the apparel, automotive components, home furnishings, medical supply, footwear and diversified industrial markets marketed under the A&E and Gütermann brand names. A&E owns or operates 28 manufacturing facilities in 23 countries and employs over 9,000 associates around the world directly or in partnership with joint venture partners. A&E products are distributed in 50 countries and sold in over 100 countries. 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. 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.
