Platinum Equity has signed an agreement to acquire American & Efird from KPS Capital Partners.
American & Efird (A&E) is the largest US manufacturer and the world’s second-largest manufacturer and distributor of industrial and consumer sewing thread, embroidery thread and technical textiles. The company’s products are used by producers of apparel, automotive components, home furnishings, medical supplies, footwear and other industrial products.
A&E owns or operates 27 manufacturing facilities in 21 countries and has nearly 10,000 employees. The company, led by CEO Les Miller, is headquartered in Mt. Holly, NC (www.amefird.com).
“A&E is a well-respected global supplier with exceptional technology, dedicated employees and the best products in the industry,” said Platinum Equity Partner Jacob Kotzubei. “The company has established a diverse footprint with global reach, strong brands, and a proven track record of profitable growth. We look forward to partnering with management to help the business continue growing organically and through the pursuit of M&A opportunities in markets around the world.”
A&E began in 1891 as Nims Manufacturing Company and in 1920 was consolidated with other textile mills into a new corporation known as American Yarn and Processing Company. In 1947, the company bought a controlling interest in the Efird Manufacturing Company and assumed the name American & Efird Mills in 1952. The company was acquired by Ruddick Corporation in 1968 and sold to KPS Capital Partners in October 2011 for $180 million.
Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion buyout fund which closed in March 2017. Platinum Equity has completed more than 200 acquisitions since its founding in 1995. The firm is based in Beverly Hills with additional offices in New York and London (www.platinumequity.com).
KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with approximately $5.2 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 $6 billion, operate 152 manufacturing plants in 30 countries, and employ over 46,000 people worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).
This transaction is expected to close in the second quarter of 2018.
© 2018 Private Equity Professional | February 26, 2018