Key Principal Partners Has Strong 2004 with New Investments of Over $140 Million; Public-to-Private, China Investment and Niche Expertise Highlight 2004 Transactions.CLEVELAND -- Key Principal Partners, a $1 billion private investment firm, announced that it has completed ten investments in 2004, investing approximately $142 million. KPP KPP Key Performance Parameter KPP K-Profile Parameterization KPP Kepler Packing Problem (mathematics) KPP Kinoform Phase Plate KPP Kodak Premium Processing KPP Knowledge Processing Subsystem provided subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". , preferred equity and common equity in both non-control and control situations to middle market companies in 2004 in a diverse range of industries. In total, KPP has made more than $500 million in investments in over 50 companies since it began investing in 1998. KPP attributes its success to dedicated investment professionals who combine over 200 years of completing successful transactions with strong operational experience and insights, as well as specific expertise in public-to-private transactions, family wealth management and sponsorless, non-controlling investments. This year they added China to their expertise set, completing the first buyout of a manufacturing business by a U.S.-based private equity firm. "Over the past year, the deal team has invested significant time and dollars understanding the opportunities that face our companies, both domestically and abroad," said John Sinnenberg, managing partner of Key Principal Partners. "We're proud that we've been able to help our middle market portfolio companies intelligently assess both the risks as well as the opportunities presented by an increasingly global economy. The experience of our management team in China over the last decade significantly enhances our resources. "From the latter half of 2003 through the fourth quarter of 2004, we saw a very active market for capital," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Sinnenberg. "What has been notable is the receptivity among high-quality companies with dedicated management teams to KPP as a non-controlling investment partner who adds value beyond the capital invested. As a result, we have been able to invest within an acceptable level of risk and with attractive returns for investors." Another hallmark of 2004 has been KPP's focus and increased expertise in helping manufacturers address global competition through a China strategy and facilitating public companies going private, issues that will increasingly challenge middle market companies. "Looking ahead to 2005, we believe there will be an increasing supply of capital marked by more non-traditional lenders playing in the mezzanine arena and a market characterized by a surplus of capital chasing the needs of middle market companies," Sinnenberg noted. "Our leadership in the non-controlling investment market and unique deal sourcing capability combine to yield a dynamic that should allow us to identify new portfolio companies at an acceptable pace. In fact, KPP, which is currently investing out of a pool of $500 million, will likely seek to raise a new fund in the near future. "We still believe there are literally thousands of family-owned companies, private and public company management teams and fundless sponsors who are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. expertise, commitment and partnership beyond that required to complete a deal. That will be become the salient differentiator for successful private equity firms." KPP Investments in 2004: --ASIMCO Technologies, Inc. - Led a $97 million common equity investment in ASIMCO Technologies Ltd. to facilitate the acquisition of the company. ASIMCO is the largest independent manufacturer of automotive and heavy-duty truck components in China. --Alpha Sintered sin·ter n. 1. Geology A chemical sediment or crust, as of porous silica, deposited by a mineral spring. 2. A mass formed by sintering. v. sin·tered, sin·ter·ing, sin·ters v. Metals - Common equity and subordinated debt investment to facilitate the acquisition of Alpha Sintered Metals. ASM (1) (Association for Systems Management) An international membership organization based in Cleveland, Ohio. Founded in 1947 and disbanded in 1996, it sponsored conferences in all phases of administrative systems and management. is a family held business that designs and manufactures highly precise powdered metal components. --Energy Conversion Systems (ECS See eComStation. ) - $17 million investment of subordinated debt and equity to facilitate the acquisition of the auto and consumer electronics components businesses of The Morgan Crucible Company plc. --Empire Beauty Schools - $16 million in the form of common stock to facilitate the company's acquisition of five post-secondary cosmetology cos·me·tol·o·gy n. The study or art of cosmetics and their use. [French cosmétologie : cosmétique, cosmetic; see cosmetic + -logie, -logy. schools, and support future growth. Empire is the largest operator of post-secondary cosmetology schools in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . --EPIC Technologies, Inc. - $10 million in senior subordinated debt and $2 million in junior subordinated debt and equity to support the recapitalization of this specialty electronic assemblies provider. --Focus Windows and Doors - $10 million in common stock to recapitalize Focus Doors and Windows Doors and Windows is a multimedia disk by the Irish band The Cranberries. Track listing
--Honsador Lumber - $18 million in common stock to acquire the largest wholesale building products distributor in Hawaii, and two of its affiliates, Honolulu Wood Treating (HWT HWT Harvey World Travel HWT Hot Water Treatment HWT Herald and Weekly Times Limited (Australia) HWT Half Way There HWT Heartworm Test HWT High-Warning Threshold HWT Hinged Watertight HWT Hypervelocity Wind Tunnel ) and Ariel Truss. --Integrity Media, Inc. - $15 million in senior subordinated debt to support the company's going-private transaction. Integrity is a media/ communications company Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. that is primarily focused on the publishing and distribution of Christian music Christian music is music that is written to express either personal or a communal belief regarding the Christian life, as well as (in terms of contemporary music) to give a Christian alternative to main stream secular music. and books. --Jonathan Engineered Solutions (JES (Job Entry Subsystem) Software that provides batch communications for IBM's MVS operating system. It accepts data from remote batch terminals, executes them on a priority basis and transmits the results back to the terminals. The JES counterpart in VM is RSCS. ) - $14 million in subordinated debt and $2.5 million in common equity to facilitate the acquisition of Jonathan Engineered Solutions, Inc. JES is the leading manufacturer of custom steel and aluminum slides unitized in commercial and industrial applications. --Xaloy - $6 million in senior subordinated debt and $3 million in equity in support of the acquisition of the company, the world's largest manufacturer of bimetallic bi·me·tal·lic adj. 1. Consisting of two metals, often bonded together and having different rates of thermal expansion. 2. Of, based on, or using the principles of bimetallism. barrels and feed screws for the plastics machinery industry. About Key Principal Partners Key Principal Partners (KPP) is a nationally recognized private investment firm providing capital to middle market companies throughout North America. KPP utilizes mezzanine and equity capital to fund the growth, buyout, refinancing or acquisition of profitable companies. In addition, KPP provides liquidity to shareholders of privately held stock. Distinctively, KPP's flexible approach to structuring investments does not require control of companies. KPP has approximately $1 billion in capital under management and can invest $5 million to $25 million in companies with at least $20 million in revenue. Headquartered in Cleveland, KPP is affiliated with KeyCorp, an $88 billion financial services firm and has offices in Boston, Greenwich and San Francisco. Visit us at www.keyprincipalpartners.com. |
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