BofA Merrill, GE Capital Finance Global Harness Systems Sale
KPS Capital Partners announced that its portfolio company Electrical Components International (ECI) has entered into a definitive agreement to acquire Global Harness Systems (GHS). Financial terms of the transaction were not disclosed.
Completion of the transaction is expected in January 2015.
Paul, Weiss, Rifkind, Wharton and Garrison is serving as legal counsel to KPS and ECI and its affiliates. Financing for the transaction will be provided by a syndicate of banks and institutional investors with Bank of America Merrill Lynch and GE Capital Markets acting as lead arrangers.
Raquel Palmer, a partner of KPS, said, “We are very excited about the progress that ECI has made under KPS ownership to date. Over the past several months, ECI has successfully launched its new, world-class, low-cost manufacturing facility in Morocco to serve the European market, while winning significant new business in both appliance and specialty-industrial end-markets. The strategic and industrial logic of ECI acquiring GHS is extraordinarily compelling, allowing ECI to enter new markets while also leveraging its industry-leading quality, service and product development capabilities to enhance GHS’s operations. We look forward to continuing to aggressively grow ECI both organically and through acquisitions in both North America and around the world.”
ECI is a manufacturer of wire harnesses and value-added assembly services for consumer appliance and specialty-industrial applications. ECI has over 800 customers globally and has 12 manufacturing facilities located in Canada, China, Mexico, Morocco, Poland and Spain. KPS acquired ECI in May 2014.
GHS, founded in the 1930s, is a North American manufacturer of wire harnesses and panel assemblies for the bus, power generation, specialty vehicle and marine equipment end-markets.