KPS Capital Partners’ portfolio company Waupaca Foundry has completed a successful recapitalisation.
The proceeds of the recapitalisation, funded by a USD200m upsizing of the company’s term loan, were used to fund a USD200m cash distribution to stockholders.
Following the recapitalisation, Waupaca remains conservatively capitalised and will have the continued support of KPS, its majority shareholder, to pursue continuous improvement and growth initiatives.
KPS is a private equity firm with USD2.5bn of assets under management.
KPS acquired ThyssenKrupp Waupaca, which was renamed Waupaca Foundry, from ThyssenKrupp Budd Company through a newly formed, wholly owned affiliate in June 2012.
Gary Gigante (pictured), chief executive officer of Waupaca, says: "Waupaca is now a thriving independent company under KPS’ ownership, and we are pleased to return capital to our stockholders. This recapitalisation validates the successful transformation of Waupaca that was achieved in a very short period of time. Our conservative capital structure and the financial support of our stockholders provide us with the resources to support our customers and grow aggressively, both organically and through acquisitions."
Financing for the transaction was provided by a syndicate of banks and institutional investors with GE Capital Markets acting as lead arranger. RBC Capital Markets acted as special advisor to KPS.
