PR84833

NEW YORK, July 20, 2020 /PRNewswire=KYODO JBN/ --

  -- KPS TO PARTICIPATE IN COMPANY'S DIP FINANCING TO SUPPORT OPERATIONS

  -- REACHES TENTATIVE AGREEMENT WITH THE UNITED STEELWORKERS OF AMERICA

  -- OBTAINS COMMITTED EXIT FINANCING

KPS Capital Partners, LP ("KPS") announced today that, through a newly formed

affiliate, it has entered into an asset purchase agreement with Briggs &

Stratton Corporation (NYSE: BGG) and certain of its wholly-owned subsidiaries

(collectively, "Briggs & Stratton" or the "Company") under which KPS will

acquire substantially all of the assets of Briggs & Stratton, including equity

of foreign subsidiaries, for approximately $550 million.  

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Briggs & Stratton has filed a motion with the United States Bankruptcy Court

for the Eastern District of Missouri seeking the designation of KPS as the

stalking horse bidder in a sale motion as part of the Company's filing of

voluntary petitions under Chapter 11 of the Bankruptcy Code today.  Briggs &

Stratton expects to sell its assets through a court-supervised sale process

under Section 363 of the Bankruptcy Code.

KPS, through an affiliate, has also agreed to invest $265 million in a FILO

tranche of Briggs & Stratton's Debtor in Possession ("DIP") financing to

support the Company's operations.  Upon the entry of a final order approving

the DIP facility, KPS will have the right to "credit bid" its $265 million

participation in the DIP financing in connection with the proposed acquisition

of Briggs & Stratton.  Following court approval, the DIP facility will ensure

that Briggs & Stratton has sufficient liquidity to continue normal operations

and continue to meet its financial obligations during the Chapter 11 process,

including the timely payment of employee wages and benefits, continued

servicing of customer orders and shipments, and other obligations.

KPS also announced that it has entered into an agreement in principle with the

United Steelworkers of America (the "USW") with respect to a new collective

bargaining agreement ("CBA") for Briggs & Stratton hourly employees represented

by the union at the Company's manufacturing facilities in Wisconsin. The new

CBA, an exclusive agreement between KPS and the USW, will become effective upon

completion of the acquisition.  

Further, Wells Fargo has agreed to continue to provide floorplan financing to

support Briggs & Stratton's customers under KPS' ownership, and a syndicate of

banks including Wells Fargo, Bank of America, BMO Harris Bank and PNC Business

Credit has committed to provide exit financing to Briggs & Stratton. The financings

are subject to completion of the acquisition and customary closing conditions.  

Michael Psaros, Co-Founder and Co-Managing Partner of KPS, said, "We are very

excited to acquire Briggs & Stratton, a legendary brand in American

manufacturing and the leading company in its industry.  Briggs & Stratton

enjoys a leading market position, scale, a global manufacturing footprint,

world-class design and engineering capabilities, and a portfolio of

industry-leading products sold under iconic brand names. We intend to

capitalize on the Company's many attractive growth opportunities and to support

its already substantial investment in research and development, technology and

new product development. KPS intends to grow the new Briggs & Stratton

aggressively through strategic acquisitions.

"KPS is committed to the expeditious acquisition of Briggs & Stratton to

provide certainty of outcome and confidence in the new Company's future for all

of its stakeholders, including customers, employees and suppliers. The Company

and its stakeholders will benefit from KPS' demonstrated commitment to

manufacturing excellence, continuous improvement, global network, access to

capital and significant financial resources.  The new Briggs & Stratton will be

conservatively capitalized and not encumbered by its predecessor's significant liabilities.  

"We thank the United Steelworkers of America for its support of our acquisition

of the Company. "We have expended an enormous amount of effort, resources and

capital on this process to date. We are confident that all of the conditions

necessary to create a new thriving going concern enterprise are in place,"

Mr. Psaros concluded.  

Kirkland & Ellis LLP is acting as legal counsel to KPS with respect to the transaction.

About Briggs & Stratton Corporation

Briggs & Stratton Corporation (NYSE: BGG), headquartered in Milwaukee,

Wisconsin, is focused on providing power to get work done and make people's

lives better.  Briggs & Stratton is the world's largest producer of gasoline

engines for outdoor power equipment, and is a leading designer, manufacturer

and marketer of power generation, pressure washer, lawn and garden, turf care

and job site products through its Briggs & Stratton(R), Simplicity(R),

Snapper(R), Ferris(R), Vanguard(R), Allmand(R), Billy Goat(R), Murray(R),

Branco(R) and Victa(R) brands. Briggs & Stratton products are designed,

manufactured, marketed and serviced in over 100 countries on six continents.

For additional information, please visit www.basco.com and

www.briggsandstratton.com.

About KPS Capital Partners

KPS, through its affiliated management entities, is the manager of the KPS

Special Situations Funds, a family of investment funds with over $11.4 billion

of assets under management (as of March 31, 2020).  For over two decades, the

Partners of KPS have worked exclusively to realize significant capital

appreciation by making controlling equity investments in manufacturing and

industrial companies across a diverse array of industries, including basic

materials, branded consumer, healthcare and luxury products, automotive parts,

capital equipment and general manufacturing.  KPS creates value for its

investors by working constructively with talented management teams to make

businesses better, and generates investment returns by structurally improving

the strategic position, competitiveness and profitability of its portfolio

companies, rather than primarily relying on financial leverage. The KPS Funds'

portfolio companies have aggregate annual revenues of approximately $8.4

billion, operate 150 manufacturing facilities in 26 countries, and have

approximately 23,000 employees, directly and through joint ventures worldwide.

The KPS investment strategy and portfolio companies are described in detail at

www.kpsfund.com.

SOURCE: KPS Capital Partners, LP

CONTACT: Business Inquiries: KPS, +1 212.338.5100; or Media Relations: Mark

Semer, +1 917.439.3507; or Daniel Yunger, +1 917.574.8582