GE, Others Provide Financing for KPS’ ThyssenKrupp Waupaca Purchase
KPS Capital Partners, LP announced that, through a newly formed company, W Foundry International, Inc. and its affiliates, it has entered into definitive agreements to acquire ThyssenKrupp Waupaca, Inc. (Waupaca) from ThyssenKrupp Budd Company. Financial terms of the transaction were not disclosed.
GE Capital Markets, RBC Capital Markets and Wells Fargo Capital Finance acting as lead arrangers will provide financing for the transaction along with a syndicate of banks and institutional investors.
Waupaca is an iron foundry company and produces gray and ductile iron castings using state-of-the-art technology. Waupaca is a North American supplier of iron castings to the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets. Headquartered in Waupaca, WI, the company operates six manufacturing facilities, located in Wisconsin, Indiana, and Tennessee. The company employs approximately 3,500 people.
David Shapiro, a KPS managing partner, said, “We are very excited to create an independent Waupaca Foundry. Waupaca is the largest company in its industry worldwide with the leading North American market share in each of its diverse end markets and strong customer relationships that have been developed over decades of partnership. The company possesses world-class assets, unrivaled scale and scope, industry leading quality and service, and a commitment to investing in state-of-the-art technology and process development. We look forward to working with CEO Gary Gigante, his management team and all of Waupaca’s employees to build on this great platform by strategically expanding into regions where Waupaca’s key customers are growing. The combination of the company’s unique strengths and the financial resources of KPS will provide the foundation for Waupaca’s future growth, both organically and through acquisitions in North America and around the world.”
Gigante, president and CEO of Waupaca, said “We are thrilled to become an independent company under KPS’ ownership. KPS’ commitment to manufacturing excellence and enthusiastic support of our extraordinary growth trajectory and globalization initiatives positions our Company for continued success. We look forward to continuing to provide our customers with industry leading quality, customer service and innovation.”
The closing of the transaction is expected during the second quarter of 2012 and is subject to customary closing conditions. ThyssenKrupp Waupaca will be renamed Waupaca Foundry upon closing of the transaction.
Perella Weinberg Partners, L.P. acted as financial advisor and Paul, Weiss, Rifkind, Wharton and Garrison LLP served as legal counsel to KPS and W Foundry International, Inc. and its affiliates.