Briggs & Stratton has announced that KPS Capital Partners, through a newly formed affiliate, has acquired substantially all of the assets of Briggs & Stratton and certain of its wholly owned subsidiaries for approximately $550 million.
The US Bankruptcy Court for the Eastern District of Missouri formally approved the transaction on 15 September and it was completed on 22 September, ending Briggs & Stratton’s Chapter 11 bankruptcy proceeding.
Briggs & Stratton will now operate as an independent company with the long-term support of KPS, a global private equity investor.
Briggs & Stratton said it relaunches as a well-capitalised company, unencumbered by more than $900 million of its predecessor’s legacy obligations and access to the financial resources required to execute its ambitious business improvement and growth plans.
The company also announced, as previously reported, that Steve Andrews has been named President and CEO of Briggs & Stratton, effective 22 Sept.
He succeeds Todd Teske, who had been Chairman, President and CEO since 2010 and had served in other senior management positions after joining the company in 2005 as Head of Corporate Development and Controller.
KPS and Andrews have a history of successfully working together to create, operate and grow world-class businesses.
KPS and Andrews partnered in 2011 to form International Equipment Solutions (IES). Under KPS’ ownership and Andrews’ leadership, IES, through a series of acquisitions and other growth initiatives, transformed two non-core divisions of a large corporation into a profitable company. IES became a leading independent manufacturer of attachment tools, operator cabs and other complex fabrications for off-highway applications.
“This is the beginning of a new era for Briggs & Stratton, a legendary brand in American manufacturing and the leading company in its industry,” said Michael Psaros, co-founder and co-managing partner of KPS. “The company has a new owner, a new CEO, a new board of directors and a renewed focus.
“Briggs & Stratton launches with a portfolio of industry-leading products sold under iconic brand names, a rock-solid capital structure and access to KPS’ financial resources and expertise.
“We look forward to accelerating the company’s growth by increasing its already substantial investment in research and development, technology and new product development. KPS will also provide the capital for Briggs & Stratton to pursue strategic acquisitions.
Briggs & Stratton is one of the world’s largest producers of gasoline engines for outdoor power equipment, and is a designer, manufacturer and marketer of commercial lithium-ion batteries, power generation, pressure washer, lawn and garden, turf care and job site products through its Briggs & Stratton, Simplicity, Snapper, Ferris, Vanguard, Allmand, Billy Goat, Murray, Branco, and Victa brands.
This story was originally published by sister magazine Diesel Progress.