NEW YORK -- The Bosch Group's automotive foundation brakes business is being acquired through a newly formed affiliate of KPS Capital Partners.
KPS Capital Partners, LP is the manager of the KPS Special Situations Funds, a family of private equity funds with more than $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. Financial terms of the transaction were not disclosed.
Bosch Foundation Brakes, headquartered in Drancy, France, is one of the world's largest manufacturers of automotive foundation brakes and foundation brake components. The company's primary products, which include brake calipers, disk brakes, drum brakes and parking brakes, are sold directly to original equipment manufacturers and through various aftermarket channels.
In 2010, Bosch Foundation Brakes generated euro 850 million ($1.1 billion) in total sales volume. The company employs 5,200 associates at 20 locations, of which 15 are manufacturing facilities, in Europe, Asia and South America.
Michael Psaros, a KPS Managing Partner, noted that the company is ideally positioned to benefit from the world's fastest-growing markets.
"In addition, the combination of the company's customer relationships and knowledge base of its thousands of associates worldwide, together with the financial resources provided by KPS, will accelerate the company's growth as an independent enterprise," he said.
Martina Merz, CEO of the Foundation Brakes Business, said, "Our objective is to build a leading supplier of foundation brakes, and I believe that the company's strong balance sheet and access to KPS's financial resources will enable it to achieve that objective. I am very confident that by tailoring the business processes to foundation-related requirements and by continuing to leverage the skill, creativity and talent of our associates, the new company will achieve its full potential."
Completion of the transaction is expected in spring 2012 and is subject to customary closing conditions.
In 2009, Akebono acquired the Bosch Foundation Brakes business in North America.
As of press time, calls to KPS for more details on the acquisition were not returned.
