NEW YORK CITY — May 9, 2016 — KPS Capital Partners LP (KPS) today announced that its portfolio company American & Efird (A&E) signed definitive agreements to acquire majority ownership of Vardhman Yarns and Threads Ltd. from its joint venture partner, Vardhman Textiles Limited. Upon completion of the transaction, A&E will own 89 percent of the joint venture and Vardhman Textiles will own the other 11 percent. The transaction has been approved by A&E and Vardhman Textiles, but remains subject to approval from the Competition Commission of India and other customary closing conditions.
Vardhman Yarns and Threads is India’s second–largest manufacturer and distributor of premium quality industrial and consumer sewing thread. Vardhman Yarns and Threads generated revenue of approximately $110 million in FY2015-2016, operates 5 manufacturing facilities, employs over 4,500 associates and sells some of the most-widely recognized industrial sewing thread brands in India
Les Miller, CEO, A&E, said: “The acquisition of Vardhman Yarns and Threads accelerates A&E’s continued global growth and diversification. Our long-standing blue-chip customer base, including leading global brands, multinational corporations and regional manufacturers, rely on A&E as a mission-critical supply chain partner. This acquisition further enhances our demonstrated ability to provide customers with the highest-quality thread and superior service around the world. Vardhman Yarns and Threads’ excellent reputation, world-class operations and leading position in the Indian market will enable A&E to more fully benefit from both fast-growing domestic demand for high-quality products in India and increasing international demand for exports from India. A&E will invest significant capital and resources into Vardhman Yarns and Threads to continue to ensure the highest levels of product quality, environmental sustainability, technological innovation and customer service.
We thank Vardhman Textiles for their continued valuable contributions to Vardhman Yarns and Threads’ success. The strategic partnership with Vardhman Textiles has been important to strengthening Vardhman Yarn and Threads’ leadership position in India and helped accelerate its growth trajectory. We look forward to our continued collaboration with Vardhman Textiles.”
Michael Psaros, a managing partner of KPS, said: “Under KPS ownership, A&E has successfully completed five highly synergistic acquisitions that helped the Company strengthen its world-class strategic global manufacturing, distribution and service platform that provides the Company with a unique competitive advantage. A&E will continue to aggressively expand into adjacent geographies, products and end-markets around the world. A&E’s global reach, product diversity, world-class environmental sustainability practices, and conservative capital structure enable the Company to continue its momentum and success. KPS thanks, in our opinion, the most accomplished management team in the industry, along with all of A&E’s associates around the world, for almost doubling the size of the Company in such a short time period. We look forward to continuing to support A&E’s growth, both organically and through acquisition and joint venture opportunities.”
A&E expects to complete the transaction in the summer of 2016.
McGuireWoods LLP and J.Sagar Associates served as legal counsel to A&E and its affiliates.
Posted May 24, 2016
Source: American & Efird