NEW YORK, Oct. 28, 2011 /PRNewswire/ -- KPS Capital
Partners, LP ("KPS") announced today that it has entered into
definitive agreements to acquire American & Efird, Inc.
("A&E" or the "Company") from Ruddick Corporation (NYSE: RDK)
("Ruddick") through a newly-formed affiliate, A&E Global, for
$180.0 million, subject to certain
post-closing adjustments.
A&E, headquartered in Mt. Holly,
North Carolina, is the largest U.S. manufacturer and the
world's second-largest manufacturer and distributor of premium
quality industrial sewing thread, embroidery thread and technical
textiles. A&E thread is used by producers of apparel,
automotive components, home furnishings, medical supplies, footwear
and certain industrial products. A&E owns or operates 23
plants and employs 11,000 associates around the world directly or
in partnership with joint venture partners.
Michael Psaros, a KPS Managing
Partner, said, "We are excited to create a new, independent A&E
Global. Rarely have we seen a North American enterprise so
successfully globalize by capitalizing on its numerous competitive
advantages and following its customers abroad, while still
retaining its core values. The Company is ideally positioned
to benefit from the growth of the world's fastest growing markets.
A&E's exceptional high-quality product offering, superior
customer service, global footprint, operational and technical
expertise and customer base, together with financial resources
provided by KPS, will accelerate A&E's success and growth in
the global marketplace."
Fred Jackson, Chief Executive
Officer of A&E, said, "Our management team and associates are
very excited to be part of the KPS portfolio of companies.
KPS uniquely recognized the true value of our business
created over decades, especially the superior growth and momentum
achieved in China, India and Greater
Asia. We are impressed by KPS's commitment to
manufacturing excellence, which will enable us to continue to
provide our customers with industry-leading products and superior
service. We expect that our strong balance sheet and access
to KPS's financial resources will enable us to continue our global
growth strategy."
Completion of the transaction is expected in the fourth quarter
of 2011 and is subject to customary closing conditions.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal
counsel to KPS and its affiliates.
About American & Efird, Inc.
American & Efird ("A&E") is one of the world's largest
global manufacturers and distributors of industrial sewing thread,
embroidery thread and technical textiles, produced from natural and
synthetic fibers. Producers of apparel, automotive
components, home furnishings, medical supplies and footwear rely on
A&E industrial sewing thread to manufacture their products.
A&E, headquartered in Mt. Holly,
North Carolina, is the largest U.S. manufacturer and the
world's second-largest manufacturer and distributor of premium
quality industrial sewing thread, embroidery thread and technical
textiles. A&E thread is used by producers of apparel,
automotive components, home furnishings, medical supplies, footwear
and certain industrial products. A&E owns or operates 23
plants and employs 11,000 associates around the world directly or
in partnership with joint venture partners.
Customers select A&E as the preferred choice for industrial
sewing thread, embroidery thread and technical textiles because of
A&E's dedication to providing its customers with the finest
products and services, at the highest quality, delivered globally.
Learn more about A&E at www.amefird.com.
About KPS Capital Partners, LP
KPS Capital Partners, LP is the manager of the KPS Special
Situations Funds, a family of private equity funds with over
$2.7 billion of assets under
management focused on constructive investing in restructurings,
turnarounds and other special situations. KPS has created new
companies to purchase operating assets out of bankruptcy;
established stand-alone entities to operate divested assets; and
recapitalized highly leveraged public and private companies.
The KPS investment strategy targets companies with strong
franchises that are experiencing operating and financial problems.
KPS invests its capital concurrently with a turnaround plan
predicated on cost reduction, capital investment and capital
availability. Typically, the KPS turnaround plan is
accompanied by a financial restructuring of the company's
liabilities. The KPS investment strategy and portfolio
companies are described in detail at the firm's website:
www.kpsfund.com.
SOURCE KPS Capital Partners, LP