KPS Effects Turnaround, Sells Portfolio Company to Domtar for $315 Million

KPS Capital Partners recently announced it has entered into a definitive agreement to sell its portfolio company, Attends Healthcare, Inc. to Domtar Corporation (NYSE:UFS) for $315 million in cash.

KPS specializes in constructive investing and restructuring as well as turnarounds, usually accomplished by financially restructuring a company’s liabilities. Attends, headquartered in Greenville, N.C., is a leading manufacturer and distributor of adult incontinence products, and CEO Michael Fagan credited KPS’ partnership with putting the company on track.

“KPS was the only investor to recognize the potential value of our business four years ago. Working in partnership with KPS, we quickly executed a remarkable turnaround that formed the foundation for our significant growth,” said Fagan in a statement.


“During our ownership, Attends completed a stunning turnaround and has achieved significant revenue growth year after year.  We are proud to be the catalyst for the transformation of Attends, which has resulted in the Company’s acquisition by a leading strategic buyer,” said Raquel Palmer, a KPS partner, in a statement.

Paul Weiss Rifkind Wharton & Garrison LLP served as KPS’ legal counsel for the transaction, which is expected to close in the third quarter.

Montreal-based Domtar hopes Attends’ performance will continue to improve.


“We believe there is a potential to double Attends’ earnings within five years and we are committed to unleashing the great organic growth potential,” Domtar chief executive John Williams said in a statement.

Written by Alyssa Gerace