KPS Capital Partners related stories
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Cheers to KPS, As LBO Shop Deals North American BreweriesNew York private equity firm KPS Capital Partners has reached a deal to sell its North American Breweries Holdings LLC to Cerveceria Costa Rica in a deal worth $388 million. After forming the company in 2009, KPS would roll Labatt USA, Magic Hat, and Dundee, along with other brands, into the company’s platform.
Automotive Deal Engines Rev UpBuyout firms eyeing growth opportunities—and who isn’t?—have delved into the automotive sector in recent months. Their bet is that the industry will continue to rebound from its near-death-experience in the financial crisis.
- American Securities Completes HHI Deal
American Securities has completed its acquisition of HHI Group Holdings, a manufacturer of highly engineered forged components for automotive customers. The seller was KPS Capital Partners. Terms of the deal were not released. HHI was created by KPS in September 2005.
- Reuters - American Securities in Lead for Auto Parts Deal
American Securities is in the lead to buy auto parts suppliers from Carlyle Group LP and KPS Capital Partners LP, in deals that could collectively top $1.5 billion, Reuters reported. Private equity firm American Securities is in advanced stages of negotiating the acquisition of U.S. auto parts supplier Metaldyne from Carlyle for over $800 million, the people said on condition of anonymity because discussions are confidential. New York-based American Securities is also in advanced discussions to buy HHI Group Holdings, which makes forged parts, wheel bearings and powdered metal engine and transmission components for the automotive and industrial sectors, from KPS Capital Partners for more than $700 million, the people added.
NEED TO MEET SOLVEIGH MARCKS Managing Director, The Denali GroupThe economy may be soft, but private equity is still doing plenty of hiring, according to Solveigh Marcks, managing director of New York-based executive recruitment firm The Denali Group.
- Chart of the Week: What Is The Investment Period?
One of the immutable laws of private equity is that firms have a limited period of time in which to invest their funds, often five years (see table below). Another is that buyout firms don’t like investing during credit crunches or before a downturn has bottomed out. Given that the last five years saw both a credit crunch and major downturn, many buyout firms have had to ask their limited partners for extensions of their investment periods. It will be interesting to see if more firms negotiate six-year investment periods (turnaround shop KPS Capital Partners has one) in the months ahead.
The 2007 Vintage Produces Few Big Winners: CORRECTEDSponsors routinely promise their backers that they’ll at least double their money. But you’d be hard-pressed to find such funds in the hard-luck 2007 vintage.