KPS Portfolio Company to Acquire 50% of Huamei Thread
KPS Capital Partners announced its portfolio company American & Efird will acquire the outstanding 50% share ownership of Huamei Thread Company from joint venture partner Ningbo Veken Elite Group.
Upon completion of the transaction, A&E will own 100% of Huamei. The transaction has been approved by stockholders of A&E and Veken, but is still subject to customary closing conditions. Financial terms of the transaction were not disclosed.
Michael Psaros, a Managing Partner of KPS, said, “KPS acquired A&E in 2011 to create the premier global manufacturer of industrial sewing thread. Through four highly synergistic acquisitions, A&E continues to successfully expand into adjacent geographies, products and end-markets. The acquisition of Huamei further strengthens A&E’s global footprint, significantly streamlines and integrates A&E’s Asian operations and positions A&E to benefit fully from the fast-growing demand for high-quality products in China’s domestic market. We will continue to grow A&E aggressively both organically and through acquisitions.”
Fred Jackson, CEO of A&E, said, “The acquisition of Huamei is an important step in A&E’s continued growth and diversification. Taking full ownership and control of Huamei enhances our ability to provide customers with the highest quality thread and superior service around the world. A&E is excited to add Huamei’s nationally recognized brand, Dunhuang, to its robust portfolio of high-quality brands and products. Dunhuang’s strong heritage and excellent reputation in the local Chinese market will further strengthen A&E’s product offering to its customers. A&E will invest significant capital and resources into Huamei to ensure the highest levels of product quality, environmental sustainability, technological innovation and customer service.”
Completion of the transaction is expected in May 2015 and is subject to customary closing conditions.
A&E is a global manufacturer and distributor of premium quality industrial and consumer sewing thread, embroidery thread and technical textiles.