NEW YORK, July 2, 2012 /PRNewswire/ -- KPS Capital Partners, LP ("KPS") announced today its portfolio company, Motor Coach Industries International, Inc. ("MCI" or the "Company"), has entered into a strategic partnership with Daimler in North America. In connection with the transaction, Daimler is receiving a minority ownership position in MCI, and MCI is becoming the exclusive distributor of Setra motor coaches and aftermarket parts in the United States and Canada. Financial terms of the transaction were not disclosed.
MCI is the largest manufacturer of intercity highway coaches in North America and has the largest installed fleet. MCI is also an industry leading provider of aftermarket parts and service. Daimler is the world's largest manufacturer of buses and coaches over 8 tons gross vehicle weight.
This strategic partnership with Daimler will further strengthen MCI's leadership position in North America by adding the luxury Setra motor coach to MCI's product portfolio. In addition, MCI will gain access to Daimler's world class engineering and manufacturing capabilities and highly advanced technologies. Setra and Daimler will share in MCI's best-in-class sales, distribution and service infrastructure throughout the United States and Canada. All parties will benefit from purchasing economies of scale and the sharing of manufacturing best practices.
Jay Bernstein, a Partner of KPS, said, "KPS and MCI are very excited to establish this partnership with Daimler. The investment by Daimler validates MCI's transformation under KPS' ownership and accelerates the company's growth trajectory. MCI is clearly positioned as a market and technological leader in the U.S. and Canadian motor coach industry."
Paul, Weiss, Rifkind, Wharton and Garrison LLP served as legal counsel to KPS with respect to the transaction.
About Motor Coach Industries International, Inc.
Motor Coach Industries International, Inc. ("MCI") is a leading manufacturer of intercity coaches in the U.S. and Canada. Reliability driven, MCI builds expertly engineered, best-selling models for the tour, charter, line-haul, commuter and transit segments. MCI also offers 24-hour technical support, industry-leading technician training and the most extensive aftermarket parts and repair service. Please visit www.mcicoach.com for more information.
Daimler AG is one of the world's most successful automotive companies. With its divisions
Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world's biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides financing, leasing, fleet management, insurance and innovative mobility services. Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities on five continents. Its current brand portfolio includes, in addition to the world's most valuable premium automotive brand, Mercedes-Benz, the brands smart, Maybach, Freightliner, Western Star, BharatBenz, Fuso, Setra, Orion and Thomas Built Buses. The company is listed on the stock exchanges of Frankfurt and Stuttgart (stock exchange symbol DAI). In 2011, the Group sold 2.1 million vehicles and employed a workforce of more than 271,000 people; revenue totaled euro 106.5 billion and EBIT amounted to euro 8.8 billion.
Setra is a recognized industry leader in motorcoach innovation, quality, and design worldwide. Setra manufactures motor coaches of first-class luxury, appeal and value.
About KPS Capital Partners, LP
KPS Capital Partners, LP is the manager of the KPS Special Situations Funds, a family of private equity funds with $2.8 billion of assets under management focused on constructive investing in corporate carve-outs, restructurings and other special situations. KPS has executed highly complex corporate carve-out transactions on a global basis, and has acquired businesses from numerous Global Fortune 500 companies. The KPS investment strategy targets manufacturing and industrial companies with strong market positions that are going through a period of transition or experiencing operating or financial difficulties. For over two decades, the partners of KPS have worked with the management teams and associates of its portfolio companies to improve operating and financial performance by focusing on cost reduction, efficiency, operational excellence and strategic growth initiatives. KPS portfolio companies have aggregate annual revenues of $7.8 billion, operate 96 manufacturing plants in 24 countries and employ over 33,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at the firm's website: www.kpsfund.com
SOURCE KPS Capital Partners, LP