NEW YORK, Oct. 28, 2011 /PRNewswire/ -- KPS Capital Partners, LP ("KPS") announced today that it has entered into definitive agreements to acquire American & Efird, Inc. ("A&E" or the "Company") from Ruddick Corporation (NYSE: RDK) ("Ruddick") through a newly-formed affiliate, A&E Global, for $180.0 million, subject to certain post-closing adjustments.
A&E, headquartered in Mt. Holly, North Carolina, is the largest U.S. manufacturer and the world's second-largest manufacturer and distributor of premium quality industrial sewing thread, embroidery thread and technical textiles. A&E thread is used by producers of apparel, automotive components, home furnishings, medical supplies, footwear and certain industrial products. A&E owns or operates 23 plants and employs 11,000 associates around the world directly or in partnership with joint venture partners.
Michael Psaros, a KPS Managing Partner, said, "We are excited to create a new, independent A&E Global. Rarely have we seen a North American enterprise so successfully globalize by capitalizing on its numerous competitive advantages and following its customers abroad, while still retaining its core values. The Company is ideally positioned to benefit from the growth of the world's fastest growing markets. A&E's exceptional high-quality product offering, superior customer service, global footprint, operational and technical expertise and customer base, together with financial resources provided by KPS, will accelerate A&E's success and growth in the global marketplace."
Fred Jackson, Chief Executive Officer of A&E, said, "Our management team and associates are very excited to be part of the KPS portfolio of companies. KPS uniquely recognized the true value of our business created over decades, especially the superior growth and momentum achieved in China, India and Greater Asia. We are impressed by KPS's commitment to manufacturing excellence, which will enable us to continue to provide our customers with industry-leading products and superior service. We expect that our strong balance sheet and access to KPS's financial resources will enable us to continue our global growth strategy."Completion of the transaction is expected in the fourth quarter of 2011 and is subject to customary closing conditions.