KPS Capital Partners’ $2.1 Billion Acquisition of Garrett Motion

Davis Polk advised KPS Capital Partners, LP on the transaction. Lenz & Staehelin acts as Swiss counsel to Garrett Motion.

Capital Partners, LP entered into an agreement for the acquisition of substantially all of the assets of Garrett Motion Inc. for approximately $2.1 billion.

Garrett Motion filed a motion with the United States Bankruptcy Court for the Southern District of New York last night seeking the designation of KPS as the “stalking horse bidder” in connection with Garrett Motion’s filing of voluntary petitions under Chapter 11 of the Bankruptcy Code. The consummation of the sale, which is expected to be completed in early 2021, is subject to court approval, among other customary conditions.

Garrett Motion, headquartered in Rolle, Switzerland, is a differentiated technology leader, serving customers worldwide for more than 65 years with passenger vehicle, commercial vehicle, aftermarket replacement and performance enhancement solutions. KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with over $11.5 billion of assets under management (as of June 30, 2020). For over two decades, the partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing.

The Davis Polk corporate team advising KPS included partners John D. Amorosi and Brian Wolfe (Picture) and associates Nicolas R. Yamagata and Dmitriy Molchanov. The restructuring team included partner Brian M. Resnick and counsel Josh Sturm. The finance team included partner Hilary Dengel and associate Jonathan B. Brown. Partner William A. Curran provided tax advice. Partner Adam Kaminsky provided executive compensation advice.

The Lenz & Staehelin team included Guy Vermeil, Tanja Luginbühl, David Ledermann, Roland Fischer and Clément Bouvier, Dominique Müller and Janine Häsler, Rayan Houdrouge and Frédéric Neukomm.

Involved fees earner: John Amorosi – Davis Polk & Wardwell; Jonathan Brown – Davis Polk & Wardwell; William Curran – Davis Polk & Wardwell; Hilary Dengel – Davis Polk & Wardwell; Adam Kaminsky – Davis Polk & Wardwell; Dmitriy Molchanov – Davis Polk & Wardwell; Brian Resnick – Davis Polk & Wardwell; Joshua Sturm – Davis Polk & Wardwell; Brian Wolfe – Davis Polk & Wardwell; Nicolas Yamagata – Davis Polk & Wardwell; Clément Bouvier – Lenz & Staehelin; Roland Fischer – Lenz & Staehelin; Janine Häsler – Lenz & Staehelin; Rayan Houdrouge – Lenz & Staehelin; David Ledermann – Lenz & Staehelin; Tanja Luginbühl – Lenz & Staehelin; Dominique Müller – Lenz & Staehelin; Frédéric Neukomm – Lenz & Staehelin; Guy Vermeil – Lenz & Staehelin;

Law Firms: Davis Polk & Wardwell; Lenz & Staehelin;

Clients: Garrett Motion; KPS Capital Partners, LP;

Author: Ambrogio Visconti