KPS Capital Partners announced that its portfolio company Chassis Brakes International Group has completed its second successful recapitalization. Proceeds of the recapitalization will be used to fund a cash distribution to stockholders, refinance the company’s capital structure, purchase Robert Bosch GmbH’s financial interests in the company and provide resources for investments in technology and growth.
KPS created Chassis Brakes International in May 2012 to acquire the global automotive foundation brakes business of Bosch, in connection with a highly complex global corporate carve-out transaction. Since the acquisition, KPS and management have transformed Chassis Brakes International into an independent, growing and profitable company. Chassis Brakes International has constructed new manufacturing facilities in Poland, China, India and Mexico, launched new products, expanded its customer base globally and invested in new technology while maintaining quality and customer service levels.
Following the recapitalization, Chassis Brakes International says it remains conservatively capitalized with the continued support of KPS to pursue organic and strategic growth initiatives.
Michael Psaros, a managing partner of KPS, said, “Chassis Brakes International is an excellent example of KPS’ ability to see value where others do not, to buy right and make businesses better. Under KPS’ ownership, Chassis Brakes International has been transformed from a former business unit into an independent, profitable, growing and technology-focused company. This complex carve-out and ambitious turnaround has resulted in Chassis Brakes International’s extraordinary success and growth. Chassis Brakes International has commercialized new industry-leading products, increased its market share, and diversified its customer base and geographic exposure. We thank Chassis Brakes International’s management team and employees around the world for achieving this remarkable milestone.”
Thomas Wünsche, CEO of Chassis Brakes International, added, “Our company’s successful recapitalization validates the incredible transformation Chassis Brakes International has experienced under KPS’ ownership, and provides the resources to drive our ambitious growth plans. Thanks to our customers’ confidence and our employees’ and suppliers’ commitment, the company’s momentum and trajectory are extraordinary. In particular, Chassis Brakes International’s brake caliper and braking system position the company to capitalize on two of the industry’s mega-trends: the electrification of the automobile and ultimate success of autonomous driving.”
Financing for the transaction was provided by KKR Credit. Gide Loyrette Nouel served as legal counsel to Chassis Brake International with respect to the recapitalization.