GE Capital Arranges Recap of KPS Capital’s Waupaca Foundry
KPS Capital Partners announced that its portfolio company, Waupaca Foundry, completed a successful recapitalization. The proceeds of the recapitalization, funded by a $200 million upsizing of the company’s term loan, were used to fund a $200 million cash distribution to stockholders.
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.
Following the recapitalization, Waupaca remains conservatively capitalized and will have the continued support of KPS, its majority shareholder, to pursue continuous improvement and growth initiatives.
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, CEO of Waupaca, said, “Waupaca is now a thriving independent company under KPS’ ownership, and we are pleased to return capital to our stockholders. This recapitalization 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.”
Waupaca Foundry produces gray and ductile iron castings using state-of-the-art technology.
KPS Capital Partners is the manager of the KPS Special Situations Funds, a family of private equity funds with $2.5 billion of assets under management focused on constructive investing in restructurings, turnarounds and other special situations.