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, Chief Executive Officer of 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.
About American & Efird
A&E is the largest U.S. manufacturer and the world’s second-largest manufacturer and distributor of premium quality industrial and consumer sewing thread, embroidery thread and technical textiles. Producers of apparel, automotive components, home furnishings, personal care, hygiene, footwear and a diverse range of industrial products rely on A&E industrial sewing thread to manufacture their products. Customers select A&E as the preferred choice for industrial sewing thread, embroidery thread and technical textiles because of A&E’s dedication to providing its customers with the finest products and services, at the highest quality, delivered globally. Through its global network, A&E’s products are manufactured in 23 countries, distributed in 50 countries and sold in over 100 countries. In addition to A&E’s steadfast commitment to superior quality and customer service, A&E is a recognized industry leader in environmental sustainability and corporate social responsibility, and operates its global facilities with the utmost regard for the safety and health of its associates employed worldwide. A&E owns or operates 27 manufacturing facilities and employs over 10,000 associates around the world directly or in partnership with joint venture partners. For more information, please visit www.amefird.com.
About KPS Capital Partners, LP
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $5.4 billion of assets under management. KPS seeks to realize significant capital appreciation by making controlling equity investments in companies across a diverse range of manufacturing industries experiencing a period of transition or challenged by the need to effect immediate and significant change. KPS creates value for its investors by seeing value where others do not, buying right and making businesses better. The KPS investment strategy is based primarily upon partnering with world-class management teams to effect material and sustainable improvements in the operations of its businesses. Thereafter, KPS focuses on growing its businesses, both organically and through strategic acquisitions. The KPS Funds’ portfolio companies have aggregate annual revenues of approximately $5.1 billion, operate 93 manufacturing facilities in 23 countries, and employ approximately 41,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.