Klopman International (BS Private Equity)

BS PRIVATE EQUITY: sold Klopman to MW Unitexx S.A.

MILAN May 2, 2008 – BS Private Equity, one of the leading, independent private equity players in Italy, together with IPEF III and MPS Ventures SGR SpA, sold its controlling stake in Klopman to MW Unitexx S.A., a wholly owned subsidiary of MW Corp, and a sister company of S.Kumars Limited, an Indian company engaged in the textile business for several decades.

      Klopman, the leading European manufacturer of textile for the work-wear, protective-wear and apparel industries, recorded revenues of €125 million in fiscal year 2007.  Established in the late '60s by Burlington of the US, the company has production facilities in Frosinone (Italy) and Monastir (Tunisia), and distributes its products through its sales offices located in Dusseldorf, Lyon, Barcelona, Richmond (UK), Moscow, Boras (Scandinavia), Lodz (Poland) and Milan.

      BS Private Equity, along with IPEF III, purchased Klopman in 2004 from Galey & Lord (now Swift Galey), with the aim of supporting its growth and strengthening its leadership in the European markets.

      Throughout the holding period, the investment has been characterised by continuing investments, which have allowed Klopman to further improve its competitive position and sustain its profitability.  Specifically, management devised and implemented a strategy focused on selling high value added products, on reducing operating costs and on improving its production blueprint, thereby achieving optimal financial results.

      This investment was sold at an enterprise value of €70 million, allowing BS Private Equity to achieve a cash multiple of about 3 times.

      BS Private Equity was assisted in the transaction by Compass, Rondelli Advisers (M&A advisory), NCTM (legal), Deloitte (accounting) and by BC& (tax).  MW was assisted in the transaction by Meghraj SP Corporate Finance and their local Partner in the Global M&A network, Studio Legale Delfino e Associati Willkie Farr & Gallagher LLP, and Grant Thornton accounting.

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ABOUT BS PRIVATE EQUITY

      BS Private Equity is one of Italy's leading private equity firms, investing in manufacturing and service companies.  It arranges management buy-outs and buy-ins, with the goal of assisting experienced executives who are eager to become entrepreneurs.  It provides the capital that unlisted companies need to grow both internally and externally.

      BS Private Equity, owned directly by its partners, manages, through BS Investimenti SGR, BS Investimenti IV, one of the largest country funds in Italy, with a total size of €550 million.

ABOUT MW UNITEXX GROUP

      The MW Unitexx Group has inherited a rich legacy, with over 60 years of serving the uniform and work-wear market, being one of the largest Indian players fully integrated from manufacturing of fabrics to finished garments and retail.

      The acquisition of Klopman gives MW Corp great consolidation opportunities in the international market, which has a total market size of over US$ 5 billion and grows at a 5 % per annum, leveraging on the distinctive and willing strength of a European brand and high technical value added fibers.  As work-wear has been identified as a major growth area by MW Corp, there are very strong growth prospects for Klopman under the MW Corp umbrella. Klopman represents sound foothold in Europe to start further growth in western markets both organically and through acquisitions.

      MW Corp is a billion dollar enterprise with interests in Textiles, Renewable Energy & Hydro Power and is spearheaded by brothers Mukul and Warij Kasliwal.

ABOUT MPS VENTURES

      MPS Ventures SGR SpA is private equity firm managing closed-end funds in Italy.