KKR Asset Management ("KAM") a leading sub-investment grade manager that
is wholly-owned by Kohlberg Kravis Roberts & Co. L.P. (together with its
affiliates, "KKR"), today announced that entities advised by or
affiliated with Kohlberg Kravis Roberts & Co. L.P., including KKR
Financial Holdings LLC (NYSE: KFN), have entered into an agreement with
Arle Capital Partners, the lead investor in the company, and Hilding
Anders International AB ("Hilding Anders"), to provide a €350 million
PIK (payment in kind) facility to repay current lenders and to complete
a comprehensive recapitalisation of the business.
Hilding Anders International AB is a leading bed and mattress
manufacturer based in Sweden, with strong market positions in Europe and
Russia and a growing presence in Asia. The Company, which sells both
branded and private-label products, employs 7,600 colleagues in over 40
markets and has experienced strong growth over the past decade through
The investment has been made through investment funds managed by KKR
Asset Management, which makes strategic, long-term investments in
attractive companies by providing resources to ensure a strong financial
profile and improve operations.
Marc Ciancimino, Managing Director of KKR Asset Management, said:
"Hilding Anders is a manufacturing and retail company with leading
market positions and significant growth opportunities, especially in
emerging markets. This is exactly the type of company that we like to
support by providing long term financing. Amidst the current dislocation
in the European markets, we have made and will continue to make
investments in such enterprises. "
Javier Abad, Partner at of Arle Capital Partners, added: "Hilding Anders
has a clear road map to value creation and the potential to expand
across Europe, Asia and Russia. We are grateful for the strong support
from our existing lenders who agreed to a refinancing of the business.
This, combined with the additional investment from KKR, will enable
Hilding Anders to comfortably pursue its strategic goals.
"We are delighted to partner with KKR, who recognise the inherent
strengths of the business and share our long term vision for the
"We are very pleased that the long term financing for Hilding Anders has
been secured. We look forward to partner with KKR on our journey to
become the leading provider of beds", commented Anders Pettersson, CEO
and President of Hilding Anders."
— Ends —
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with $$83.5billion in assets under
management as of June 30, 2013. With offices around the world, KKR
manages assets through a variety of investment funds and accounts
covering multiple asset classes. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active
oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with fund investors
through its client relationships and capital markets platform. KKR & Co.
L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR), and
"KKR," as used in this release, includes its subsidiaries, their managed
investment funds and accounts, and/or their affiliated investment
vehicles, as appropriate.
KKR has a long established history of successfully partnering with
companies and shareholders in Europe, having made its first investment
in Europe 17 years ago.
About KKR Asset Management:
Launched by KKR in 2004, KAM invests on behalf of its managed funds,
clients and accounts across long/short equities and the corporate credit
spectrum, including secured credit, bank loans and high yield securities
and alternative assets such as mezzanine financing, special situations
investing and structured finance. With more than 100 employees,
including 50 investment professionals, KAM's investment teams are
closely aligned with KKR's wealth of private equity investment and
industry resources. KAM has $$19.9 billion in assets under management as
of June 30, 2013. For additional information, please visit KKR's website
About Arle Capital Partners:
Arle Capital Partners Limited is a London-based private equity
Arle brings together an accomplished team of investment professionals
and proven international business leaders, managing a diverse portfolio
of around €2 billion for a global investor base. Since taking on
the portfolio in 2009, Arle has returned more than €730 million to
investors, realising three investments: Ontex, Equity Trust and Capital
Arle's approach is based on active ownership, working in close
partnership with management to drive long term uplifts in growth and
value and ultimately generate strong returns for Arle's investors. For
more information, please visit www.arle.com.
For more information, please visit www.arle.com.
About Hilding Anders:
Hilding Anders, a leading bed and mattress manufacturer based in Sweden,
has a market-leading position in Europe and Russia and a growing
presence in Asia. The Company, which sells both branded and
private-label products, employs 7,600 people in over 40 markets and has
delivered strong growth over the past decade. Sales in the first half of
2013 have been 4% ahead of the prior year. For more information, please
KKR Asset Management
(0)20 7104 2510 / +44 (0)7590 229 358
Turner / Nina Suter
207 251 3801
Source: KKR Asset Management
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