KPS Capital Partners To Sell DexKo To Brookfield Business Partners
PR90457
NEW YORK, July 5, 2021 /PRNewswire=KYODO JBN/ --
- DEXKO DOUBLED ITS PROFITS UNDER KPS' OWNERSHIP
KPS Capital Partners, LP ("KPS") announced today that it has signed a
definitive agreement to sell its portfolio company, DexKo Global Inc. ("DexKo"
or the "Company"), to Brookfield Business Partners L.P. (NYSE:BBU) (TSX:BBU.UN)
together with its institutional partners (collectively "Brookfield") for $3.4
billion. Brookfield Business Partners L.P. is the flagship listed business
services and industrials company of Brookfield Asset Management.
Logo - https://mma.prnewswire.com/media/1023167/KPS_Logo.jpg
DexKo is the world's leading supplier of advanced chassis technology, chassis
assemblies and related components with more than 130 years of experience in
trailer and caravan components. DexKo was founded at the end of 2015 through
the combination of Dexter and AL-KO Vehicle Technology. KPS acquired DexKo in
2017 from The Sterling Group L.P., who retained a minority ownership stake in
the Company. Headquartered in Novi, Michigan, DexKo employs more than 6,000
associates with 50 production facilities and 50 distribution centers
worldwide.
KPS and DexKo's management team executed a successful growth strategy and
created a large-scale, leading global industrial components manufacturer. In
under four years of KPS' ownership, DexKo completed 15 acquisitions, investing
over $600.0 million to significantly broaden DexKo's product offering, expand
the Company's geographic, end-market and channel reach and strengthen DexKo's
position in its existing markets. KPS and management transformed DexKo by
investing in automation, reducing manufacturing complexity, enhancing the
Company's procurement processes and improving DexKo's commercial strategy. As
a result of these initiatives, DexKo doubled its profits, achieved
industry-leading margins and generated significant free cash flow under KPS'
ownership.
Raquel Palmer, Co-Managing Partner of KPS stated, "DexKo exemplifies the KPS
investment strategy of seeing value where others do not, buying right and
making businesses better, across decades, economic and business cycles,
geographies and industries.
"We are proud of DexKo's extraordinary transformation under our ownership.
DexKo demonstrates our ability to partner with world-class management teams to
build industry-leading manufacturing companies on a global basis. The
Company's success is a direct result of KPS' unwavering commitment to and
investment in DexKo's organic and strategic growth initiatives and its people.
The Company is well-positioned for continued growth and industry leadership
under Brookfield's ownership.
"We congratulate and thank Fred Bentley, DexKo's Chief Executive Officer, along
with the Company's senior management team, for their strategic vision and
brilliant execution, which resulted in the Company's significant growth and
value creation under our ownership. We also thank The Sterling Group, who was
an excellent partner to KPS and the Company over the last four years."
Fred Bentley, Chief Executive Officer of DexKo, added, "Our partnership with
KPS has been extraordinary. KPS recognized DexKo's strength and potential from
the start and invested to support DexKo's growth ambitions. DexKo has become a
better business as a result of KPS' investments in our operations and people.
KPS supported our efforts to provide our customers with unparalleled quality,
technology and customer service. In addition, KPS deployed its significant
capital resources and expertise to support DexKo's acquisitive growth
strategy. DexKo is well positioned for future growth which we look forward to
pursuing in partnership with Brookfield."
Paul Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel and Goldman
Sachs & Co. LLC, supported by Credit Suisse and J.P. Morgan Securities LLC,
served as lead financial advisor to KPS and DexKo. Completion of the
transaction is subject to customary closing conditions and approvals.
About DexKo Global Inc.
DexKo is the world's leading supplier of advanced chassis technology, chassis
assemblies and related components with more than 130 years of experience in
trailer and caravan components. DexKo was founded at the end of 2015 through
the combination of Dexter and AL-KO Vehicle Technology. Headquartered in Novi,
Michigan, the company employs more than 6,000 associates with 50 production
facilities and 50 distribution centers worldwide.
About KPS Capital Partners, LP
KPS, through its affiliated management entities, is the manager of the KPS
Special Situations Funds, a family of investment funds with approximately $12.8
billion of assets under management (as of March 31, 2021). For nearly three
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 currently have aggregate annual revenues of approximately
$10.9 billion, operate 149 manufacturing facilities in 22 countries, and have
approximately 35,000 employees, directly and through joint ventures worldwide
(as of March 31, 2021, pro forma for recent acquisitions). The KPS investment
strategy and portfolio companies are described in detail at www.kpsfund.com.
SOURCE KPS Capital Partners, LP
CONTACT: Business Inquiries: KPS – 212.338.5100 OR Media Relations: Jennifer
Prosek or Trevor Gibbons – 646.818.9246
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