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KPS Capital Partners To Sell DexKo To Brookfield Business Partners In $3.4 Bln Deal

KPS Capital Partners, LP announced Monday that it has signed a definitive agreement to sell its portfolio company, DexKo Global Inc., to Brookfield Business Partners L.P. (BBU, BBU.UN.TO) together with its institutional partners for $3.4 billion.

Completion of the transaction is subject to customary closing conditions and approvals.

Brookfield Business Partners L.P. is the flagship listed business services and industrials company of Brookfield Asset Management (BAM).

Novi, Michigan -based DexKo is a supplier of advanced chassis technology, chassis assemblies and related components. DexKo employs more than 6,000 associates with 50 production facilities and 50 distribution centers worldwide.

KPS acquired DexKo in 2017 from Sterling Group L.P., who retained a minority ownership stake in the company. KPS noted that DexKo doubled its profits, achieved industry-leading margins and generated significant free cash flow under KPS' ownership.

In the deal, Paul Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel and Goldman Sachs & Co. LLC, supported by Credit Suisse and J.P. Morgan Securities LLC, served as lead financial advisor to KPS and DexKo.

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