KPS has acquired American & Efird
Lincoln International (“Lincoln ”), a leading global mid-market investment bank, has announced the successful completion of a financing used by KPS Capital Partners, LP (“KPS”) to support its acquisition of American & Efird, Inc. (“A&E” or the “Company”). Headquartered in Mt. Holly, North Carolina, A&E is the largest U.S. manufacturer and the world’s second-largest manufacturer and distributor of premium industrial sewing thread 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 over 11,000 associates around the world directly or in partnership with joint venture partners.
Lincoln acted as exclusive financial advisor to the Company and KPS, helping to structure, arrange and negotiate the financing. The financing consisted of a multi-country, multi-currency committed senior secured revolving credit facility and a “unitranche” term loan. The revolving credit facility was provided by Bank of America Merrill Lynch and the unitranche facility was provided by GSO Capital Partners, LBC Credit Partners and Kayne Anderson Senior Credit Advisors.
Ron Kahn, Managing Director and co-head of Lincoln’s Debt Advisory Group, said, “The A&E transaction is an excellent example of Lincoln’s ability to conduct a competitive financing process in parallel with a sponsor’s acquisition of a target. By engaging Lincoln to assist with the sourcing of acquisition financing, sponsors are better-positioned to close transactions within sellers’ increasingly aggressive timeframes, while still exploring all available financing options.”
About American & Efird, Inc.
American & Efird, Inc. is one of the world’s largest global manufacturers and distributors of premium 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. 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.
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