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Babson Capital Backs Baby Jogger

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Babson Capital Management has provided $18.4 million of subordinated notes and $1.5 million of equity to support The Riverside Company’s recent acquisition of The Baby Jogger Company, a designer and marketer of infant and juvenile products. “Our long relationship spans more than a decade and numerous successful investments, and Babson Capital has proven itself to be a value-added partner both as a lender and an investor,” said Riverside Partner Karen Pajarillo. “The familiarity and trust we have developed translates into an ease of working together that enabled us to complete the recapitalization of Baby Jogger on an expedited timeline.”

Baby Jogger is a designer and marketer of branded infant and juvenile products focused on baby strollers, bicycle trailers and related accessories. The company was founded in 1984 and is based in Richmond, VA (www.babyjogger.com).

“Baby Jogger is a market-leading brand with a strong management team and a demonstrated ability to successfully launch new products,” said Mike Klofas, managing director and head of the Mezzanine and Private Equity Group at Babson Capital. “Riverside’s expertise in branded consumer products will help the company achieve its exciting growth potential. Babson Capital is pleased to partner with The Riverside Company once again, and we look forward to working together on future investments soon.”

The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $200 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 280 transactions with a total enterprise value of more than $6 billion. The firm is headquartered New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

Babson Capital manages about $4 billion in direct and indirect mezzanine and private equity assets and commitments and has $143 billion in assets under management as of March 31, 2012. Babson Capital, a member of the MassMutual Financial Group, is based in Boston and Springfield, MA and Charlotte, NC. The firm has six additional offices in the US and one in Sydney, Australia, with subsidiaries in London and Tokyo (www.BabsonCapital.com).

KPS Capital Partners Acquires ThyssenKrupp Waupaca

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KPS Capital Partners announced today that, through a newly formed company, W Foundry International, it has entered into an agreement to acquire ThyssenKrupp Waupaca, an iron foundry company, from ThyssenKrupp Budd Company. ThyssenKrupp Waupaca will be renamed Waupaca Foundry, Inc. upon closing of the transaction which is expected in the second quarter of 2012.

Financing for the transaction will be provided by a syndicate of banks and institutional investors with GE Capital Markets, RBC Capital Markets and Wells Fargo Capital Finance acting as Lead Arrangers.

Waupaca is the largest iron foundry company in the world and produces gray and ductile iron castings using state-of-the-art technology. Waupaca is North America’s leading supplier of iron castings to the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets. Headquartered in Waupaca, WI, the company operates six manufacturing facilities, located in Wisconsin, Indiana, and Tennessee. The company employs approximately 3,500 people (www.thyssenkruppwaupaca.com).

“We are very excited to create an independent Waupaca Foundry. Waupaca is the largest company in its industry worldwide with the leading North American market share in each of its diverse end markets and strong customer relationships that have been developed over decades of partnership. The company possesses world-class assets, unrivaled scale and scope, industry leading quality and service, and a commitment to investing in state-of-the-art technology and process development,” said David Shapiro, KPS Managing Partner.

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $2.9 billion of committed capital focused on 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. The KPS investment strategy targets companies with strong franchises that are experiencing operating and financial problems. The firm is located in New York, NY (www.kpsfund.com).

“We are thrilled to become an independent company under KPS’ ownership. KPS’ commitment to manufacturing excellence and enthusiastic support of our extraordinary growth trajectory and globalization initiatives positions our Company for continued success. We look forward to continuing to provide our customers with industry leading quality, customer service and innovation,” said Gary Gigante, President and Chief Executive Officer of Waupaca.

Perella Weinberg Partners acted as financial advisor and Paul, Weiss, Rifkind, Wharton and Garrison served as legal counsel to KPS and W Foundry International, Inc. and its affiliates.

“We look forward to working with Chief Executive Officer Gary Gigante, his management team and all of Waupaca’s employees to build on this great platform by strategically expanding into regions where Waupaca’s key customers are growing. The combination of the company’s unique strengths and the financial resources of KPS will provide the foundation for Waupaca’s future growth, both organically and through acquisitions in North America and around the world,” said Mr. Shapiro.

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