KPS Capital Partners Acquires the Assets of United Copper Industries, Inc.

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Sep 29, 2011, 10:42 ET

NEW YORK, Sept. 29, 2011 /PRNewswire/ -- KPS Capital Partners, LP ("KPS") announced today the acquisition of substantially all of the assets of United Copper Industries, Inc. (the "Seller"), an affiliate of Organizacion IUSA, S.A. de C.V. ("IUSA"), through a newly formed company ("UCI" or "United Copper"). Financial terms of the transaction were not disclosed.

UCI is a leading manufacturer and distributor of building wire and cable used in the construction of industrial, residential and commercial buildings in North America. United Copper manufactures all major types of 600-volt building wire and cable, including Thermoplastic High Heat Resistant Nylon ("THHN") wire, Thermoplastic Flexible Fixture Nylon ("TFFN") wire, Non-Metallic ("NM-B") cable, Underground Feeder ("UF-B") cable, Metal-Clad ("MC") cable and Bare wire. All UCI products are Underwriters Laboratory approved and listed. UCI operates a state-of-the-art, vertically integrated environmentally friendly manufacturing facility located in Denton, Texas, and sells its products through prominent national, regional and local electrical distributors across the country.

David Shapiro, a KPS Managing Partner, said, "We are very excited to acquire the assets of United Copper, which we believe represents an exceptional investment opportunity. The combination of UCI's low-cost manufacturing base, first-rate management team, operational and technical expertise, and strong customer relationships, alongside the financial resources provided by KPS, will allow UCI to achieve its full potential as an industry leader. Our investment in United Copper is just the first step in the creation of a larger enterprise. We intend to aggressively grow UCI both organically and through acquisition."

Andy Blanchard, Chief Executive Officer of UCI, said, "UCI is thrilled to become an independent, U.S.-based company owned by KPS, which recognizes the true value of our business. We are very impressed by KPS's commitment to manufacturing excellence and to supporting our growth. With access to KPS' capital and our strong balance sheet, we will continue to provide our customers with industry-leading products and superior service, and expect to be an industry consolidator by acquiring companies in our core and complementary product areas."

Financing for the transaction was provided by GE Capital, Corporate Finance. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS and its affiliates.

About United Copper

UCI is a leading manufacturer and distributor of building wire and cable used in the construction of industrial, residential and commercial buildings in the United States and Canada. United Copper manufactures all major types of 600-volt building wire and cable used in both residential and commercial construction, including Thermoplastic High Heat Resistant Nylon ("THHN") wire, Thermoplastic Flexible Fixture Nylon ("TFFN") wire, Non-Metallic ("NM-B") cable, Underground Feeder ("UF-B") cable, Metal-Clad ("MC") cable and Bare wire. Building wire serves as the essential conduit to carry electrical current to all external uses of power in a building or dwelling. All UCI products are Underwriters Laboratory approved and listed. UCI operates a state-of-the-art, vertically integrated manufacturing facility located in Denton, Texas. UCI is a leader in green technology by manufacturing lead-free products and powering its facility with over 40% renewable energy. United Copper sells its products through prominent national, regional and local electrical distributors across the country. Additional information regarding UCI and its products can be found at www.unitedcopper.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 $2.9 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