KPS Affiliate Acquires Cloyes Gear and Products
May 25, 2006
KPS Special Situations Funds (New York, N.Y.; http://www.kpsfund.com) announced that a newly formed affiliate has acquired a controlling equity interest in Cloyes Gear and Products Inc. Financial terms of the transaction were not disclosed. Headquartered in Ft. Smith, Ark., Cloyes (www.cloyes.com) is a leading supplier of timing systems and components for automotive engines and operates four manufacturing facilities in the U.S., a manufacturing joint venture in Germany (Cloyes Europe GmbH), and three distribution/system assembly facilities in the U.S. KPS will invest substantial capital in Cloyes to fund growth opportunities. Previous owners of Cloyes have retained a minority interest in the company and will implement a business plan with managers in partnership with KPS focused on improving operations and investing in select capital improvement projects.