The private equity firm Kohlberg Kravis Roberts & Co. L.P. (KKR), based in New York City, has signed an agreement under which investment funds and accounts managed by its KKR Asset Management LLC (KAM) subsidiary will make an investment in the Australia-based recycling group CMA Corp. Ltd (CMA).
CMA has been in voluntary suspension since February 2010, and the company has been undertaking a capital structure review. According to KKR, CMA and KAM have been in discussions since December, 2010 on a financing strategy. KAM, on behalf of its funds and accounts, made its first investment in the company in March 2011, when, through a secondary purchase, it became the largest holder of the company's syndicated facility agreement. The investment is part of a restructuring proposal announced by CMA and is subject to approval by CMA's shareholders.
"We see great potential in CMA and are excited by the prospect of assisting in enhancing the company's capital structure. Working with management, we intend to grow the business over the long term. The recapitalization will allow CMA to move forward with greater financial certainty, improve the recycling operations of the company and provide greater security for the company's employees," says Jamie Weinstein, co-head of KKR's Special Situations group.
In addition to Australia, CMA has operations in Asia, New Zealand and North America.
KKR Takes Large Stake in Australian Recycler
Private equity firm signs agreement for sizable investment in CMA Corp.