KPS Capital Partners Agrees To Acquire Substantially All Of The Assets Of Briggs & Stratton Corporation, Including Equity Of Foreign Subsidiaries

KPS TO PARTICIPATE IN COMPANY'S DIP FINANCING TO SUPPORT OPERATIONS

REACHES TENTATIVE AGREEMENT WITH THE UNITED STEELWORKERS OF AMERICA

 OBTAINS COMMITTED EXIT FINANCING

NEW YORK, July 20, 2020 /PRNewswire/ -- KPS Capital Partners, LP ("KPS") announced today that, through a newly formed affiliate, it has entered into an asset purchase agreement with Briggs & Stratton Corporation (NYSE: BGG) and certain of its wholly-owned subsidiaries (collectively, "Briggs & Stratton" or the "Company") under which KPS will acquire substantially all of the assets of Briggs & Stratton, including equity of foreign subsidiaries, for approximately $550 million. 

Briggs & Stratton has filed a motion with the United States Bankruptcy Court for the Eastern District of Missouri seeking the designation of KPS as the stalking horse bidder in a sale motion as part of the Company's filing of voluntary petitions under Chapter 11 of the Bankruptcy Code today.  Briggs & Stratton expects to sell its assets through a court-supervised sale process under Section 363 of the Bankruptcy Code.

KPS, through an affiliate, has also agreed to invest $265 million in a FILO tranche of Briggs & Stratton's Debtor in Possession ("DIP") financing to support the Company's operations.  Upon the entry of a final order approving the DIP facility, KPS will have the right to "credit bid" its $265 million participation in the DIP financing in connection with the proposed acquisition of Briggs & Stratton.  Following court approval, the DIP facility will ensure that Briggs & Stratton has sufficient liquidity to continue normal operations and continue to meet its financial obligations during the Chapter 11 process, including the timely payment of employee wages and benefits, continued servicing of customer orders and shipments, and other obligations. 

KPS also announced that it has entered into an agreement in principle with the United Steelworkers of America (the "USW") with respect to a new collective bargaining agreement ("CBA") for Briggs & Stratton hourly employees represented by the union at the Company's manufacturing facilities in Wisconsin.  The new CBA, an exclusive agreement between KPS and the USW, will become effective upon completion of the acquisition.