Cerberus Capital Management has closed its acquisition of Electrical Components International (ECI) from KPS Capital Partners. According to a source familiar with this transaction, KPS earned a return of more than 3 times its invested capital. ECI was acquired by KPS in May 2014.
ECI is a manufacturer of wire harnesses and control boxes and a provider of assembly services for consumer appliance and specialty-industrial applications. The company’s products are used by more than 500 customers in a variety of electronic and electromechanical applications in the home appliances, agriculture and construction, heating, ventilation and air conditioning (HVAC), specialty transportation, automotive, commercial appliance and commercial electronics markers.
ECI has 35 manufacturing facilities, 19 distribution centers and sales and engineering offices located in North America, South America, Asia, Europe and Africa. The company, founded in the 1950’s, has approximately 20,000 employees worldwide and is headquartered in the St. Louis suburb of Creve Coeur (www.ecintl.com).
“Over the past six decades, ECI has established itself as a trusted global partner and supplier to the world’s leading home appliance and specialty-industrial equipment manufacturers. We are excited to work hand-in-hand with ECI’s talented management team to build upon that legacy of success and capture additional opportunities for growth,” said Michael Sanford, Co-Head of North American Private Equity and Senior Managing Director of Cerberus.
Cerberus has approximately $34 billion of capital under management and invests in three strategies: global credit opportunities (which includes non-performing loans, corporate credit & distressed debt, mortgage securities & assets, and direct lending); private equity; and real estate. The firm was founded in 1992 and is headquartered in New York (www.cerberuscapital.com).
KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with approximately $5.4 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. KPS is headquartered in New York (www.kpsfund.com).
© 2018 Private Equity Professional | June 28, 2018
