Country for PR: United States
Contributor: PR Newswire New York
Monday, July 20 2020 - 20:48
KPS Capital Partners Agrees To Acquire Substantially All Of The Assets Of Briggs & Stratton Corporation, Including Equity Of Foreign Subsidiaries
NEW YORK, July 20, 2020 /PRNewswire-AsiaNet/ --




KPS Capital Partners, LP ("KPS") announced today that, through a newly formed 
affiliate, it has entered into an asset purchase agreement with Briggs & 
Stratton Corporation (NYSE: BGG) and certain of its wholly-owned subsidiaries 
(collectively, "Briggs & Stratton" or the "Company") under which KPS will 
acquire substantially all of the assets of Briggs & Stratton, including equity 
of foreign subsidiaries, for approximately $550 million.  

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Briggs & Stratton has filed a motion with the United States Bankruptcy Court 
for the Eastern District of Missouri seeking the designation of KPS as the 
stalking horse bidder in a sale motion as part of the Company's filing of 
voluntary petitions under Chapter 11 of the Bankruptcy Code today.  Briggs & 
Stratton expects to sell its assets through a court-supervised sale process 
under Section 363 of the Bankruptcy Code.

KPS, through an affiliate, has also agreed to invest $265 million in a FILO 
tranche of Briggs & Stratton's Debtor in Possession ("DIP") financing to 
support the Company's operations.  Upon the entry of a final order approving 
the DIP facility, KPS will have the right to "credit bid" its $265 million 
participation in the DIP financing in connection with the proposed acquisition 
of Briggs & Stratton.  Following court approval, the DIP facility will ensure 
that Briggs & Stratton has sufficient liquidity to continue normal operations 
and continue to meet its financial obligations during the Chapter 11 process, 
including the timely payment of employee wages and benefits, continued 
servicing of customer orders and shipments, and other obligations. 

KPS also announced that it has entered into an agreement in principle with the 
United Steelworkers of America (the "USW") with respect to a new collective 
bargaining agreement ("CBA") for Briggs & Stratton hourly employees represented 
by the union at the Company's manufacturing facilities in Wisconsin.  The new 
CBA, an exclusive agreement between KPS and the USW, will become effective upon 
completion of the acquisition.  

Further, Wells Fargo has agreed to continue to provide floorplan financing to 
support Briggs & Stratton's customers under KPS' ownership, and a syndicate of 
banks including Wells Fargo, Bank of America, BMO Harris Bank and PNC Business 
Credit has committed to provide exit financing to Briggs & Stratton.  The 
financings are subject to completion of the acquisition and customary closing 

Michael Psaros, Co-Founder and Co-Managing Partner of KPS, said, "We are very 
excited to acquire Briggs & Stratton, a legendary brand in American 
manufacturing and the leading company in its industry.  Briggs & Stratton 
enjoys a leading market position, scale, a global manufacturing footprint, 
world-class design and engineering capabilities, and a portfolio of 
industry-leading products sold under iconic brand names.  We intend to 
capitalize on the Company's many attractive growth opportunities and to support 
its already substantial investment in research and development, technology and 
new product development. KPS intends to grow the new Briggs & Stratton 
aggressively through strategic acquisitions.

"KPS is committed to the expeditious acquisition of Briggs & Stratton to 
provide certainty of outcome and confidence in the new Company's future for all 
of its stakeholders, including customers, employees and suppliers.  The Company 
and its stakeholders will benefit from KPS' demonstrated commitment to 
manufacturing excellence, continuous improvement, global network, access to 
capital and significant financial resources.  The new Briggs & Stratton will be 
conservatively capitalized and not encumbered by its predecessor's significant 

"We thank the United Steelworkers of America for its support of our acquisition 
of the Company. "We have expended an enormous amount of effort, resources and 
capital on this process to date. We are confident that all of the conditions 
necessary to create a new thriving going concern enterprise are in place," Mr. 
Psaros concluded.   

Kirkland & Ellis LLP is acting as legal counsel to KPS with respect to the 

About Briggs & Stratton Corporation
Briggs & Stratton Corporation (NYSE: BGG), headquartered in Milwaukee, 
Wisconsin, is focused on providing power to get work done and make people's 
lives better.  Briggs & Stratton is the world's largest producer of gasoline 
engines for outdoor power equipment, and is a leading designer, manufacturer 
and marketer of power generation, pressure washer, lawn and garden, turf care 
and job site products through its Briggs & Stratton(R), Simplicity(R), 
Snapper(R), Ferris(R), Vanguard(R), Allmand(R), Billy Goat(R), Murray(R), 
Branco(R) and Victa(R) brands.  Briggs & Stratton products are designed, 
manufactured, marketed and serviced in over 100 countries on six continents. 
For additional information, please visit and

About KPS Capital Partners
KPS, through its affiliated management entities, is the manager of the KPS 
Special Situations Funds, a family of investment funds with over $11.4 billion 
of assets under management (as of March 31, 2020).  For over two decades, the 
Partners of KPS have worked exclusively to realize significant capital 
appreciation by making controlling equity investments in manufacturing and 
industrial companies across a diverse array of industries, including basic 
materials, branded consumer, healthcare and luxury products, automotive parts, 
capital equipment and general manufacturing.  KPS creates value for its 
investors by working constructively with talented management teams to make 
businesses better, and generates investment returns by structurally improving 
the strategic position, competitiveness and profitability of its portfolio 
companies, rather than primarily relying on financial leverage. The KPS Funds' 
portfolio companies have aggregate annual revenues of approximately $8.4 
billion, operate 150 manufacturing facilities in 26 countries, and have 
approximately 23,000 employees, directly and through joint ventures worldwide. 
The KPS investment strategy and portfolio companies are described in detail at

SOURCE: KPS Capital Partners, LP

CONTACT: Business Inquiries: KPS, +1 212.338.5100; or Media Relations: Mark 
Semer, +1 917.439.3507; or Daniel Yunger, +1 917.574.8582