KPS Strikes When Iron Is Hot, Sells Waupaca Foundry for $1.3B
August 20, 2014
In its biggest and most profitable deal, KPS Capital Partners has agreed to sell portfolio company Waupaca Foundry, the world’s largest producer of ductile iron and gray iron castings, to Hitachi Metals (TSE: 5486) for $1.3 billion in cash. The deal is expected to close in 4Q 2014.
Waupaca supplies iron castings to the automotive, commercial vehicle, agriculture, construction and industrial markets in North America. It operates six manufacturing facilities, mostly in Wisconsin, and employs about 3,900 people. KPS acquired Waupaca for $222 million from ThyssenKrupp in June 2012, and has since increased Waupaca's profitability by more than 40%. The company underwent dividend recapitalizations of $200 million and $125 million in 2013 to provide cash distribution to stockholders.