KPS Capital Partners has sold its portfolio company United Copper Industries to Southwire Company.
United Copper Industries (UCI) is a manufacturer of copper building wire and cable used in the construction of industrial, residential and commercial buildings. The company sells its products through national, regional and local electrical distributors across the country. UCI, led by its CEO Jeff Hykin, has approximately 300 employees and operates a vertically integrated manufacturing facility and headquarters located near Dallas in Denton, TX (www.unitedcopper.com).
KPS formed UCI in September 2011 to acquire the United States wire and cable assets of Mexico City-based Industrias Unidas. During its ownership, KPS hired a new senior management team, invested capital to modernize UCI’s equipment to improve productivity and plant efficiency, and implemented a new service-oriented approach to customers and the market that led to volume increases well in excess of overall market growth.
“Working in partnership with KPS, the UCI team implemented a turnaround plan that materially improved the productivity and efficiency of our plant while improving quality and service. These changes formed the foundation for UCI’s significant growth over the past three years,” said Mr. Hykin. “We are grateful to KPS for providing our team with the leadership, expertise, capital and other resources that were essential to our success.”
“In 2011, we acquired an undermanaged and underutilized satellite US production facility that operated as a highly transactional market participant. We transformed the company into a consistently profitable, rapidly growing North American building wire and cable manufacturer that is a true partner to its national and regional customer base of electrical distributors,” said David Shapiro, a Managing Partner of KPS. “KPS worked with management to improve every aspect of UCI, resulting in industry-leading service, quality and manufacturing efficiency. We take immense pride in what UCI has accomplished. The success of our investment in UCI demonstrates KPS’ ability to see value where others do not, to buy right and to make businesses better.
KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with approximately $5.6 billion of assets under management that invests in restructurings, turnarounds and other special situations. KPS targets manufacturing and industrial companies that are going through a period of transition or experiencing operating or financial difficulties. The firm’s portfolio companies have aggregate annual revenues of approximately $4.9 billion, operate 94 manufacturing plants in 23 countries, and employ over 40,000 people worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).
Southwire Company, the buyer of UCI, is one of North America’s largest manufacturers of wire and cable used in the distribution and transmission of electricity. Products include wire and cable, metal-clad cable, portable and electronic cord products, utility products, and OEM wire products. The company was founded in 1937 by Roy Richards and is still privately held by members of the Richards family. Southwire has annual revenues of approximately $5 billion and is headquartered west of Atlanta in Carrollton, GA (www.southwire.com).
© 2016 Private Equity Professional • 9-23-16
