Private equity firm KPS Capital Partners has acquired substantially all of the assets of United Copper Industries, an affiliate of Organizacion IUSA, S.A. de C.V. (IUSA), through a newly formed company, UCI or United Copper. Financial terms of the transaction have not been 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, says: "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, says, "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.
