The assets of the USA’s largest supplier of wire rope – Wire Rope Corporation of America – have been bought out of bankruptcy by venture capitalists for approximately $53m in assumed debt and $1.5m in cash.
KPS Special Situations Fund II, acquired the assets through a newly formed company, which is named Wire Rope Corporation of America, Inc.
The KPS Special Situations Funds are a family of private equity funds that specialise in buying and turning around distressed companies.
WRCA has 915 employees and operates four manufacturing facilities in Missouri and seven distribution centres across the USA.
A new senior management team has been established under newly appointed chief executive officer Ira Glazer, who was formerly the chief restructuring officer.
Glazer said: “We are pleased to have emerged from bankruptcy as a market leader with so many exciting prospects in front of us. These times have put our staff to the test. Though a tough process, they believed it could be done and made it happen.” He added: “We have reshaped this company with a combination of experienced, knowledgeable personnel along with new and talented staff and made it profitable once again. We will be the leader in this industry providing the best quality and service possible to our markets.” Eric Bruder has been named senior vice president of manufacturing and John Josendale is senior vice president of sales, marketing and fabricated products. Other senior managers include David Guilfoyle, vice president – human resources and corporate counsel; Mike Hughes, vice president – sales; and David Hornaday, vice president – marketing and distribution. A new chief financial officer is also joining the company.
KPS said that it would will make $16.5m of capital investments in WRCA, including a $14m equity investment and a $2.5m secured loan, to fund working capital requirements as the company continued to restructure. KPS has also renegotiated and extended approximately $50m in WRCA credit facilities.
