In less than two months, Wauwatosa-based Briggs & Stratton Corp. went from filing for Chapter 11 bankruptcy in a Missouri federal court to having a judge sign off on its sale to New York-based private equity firm KPS Capital Partners.
The sale will keep the Briggs & Stratton brand alive and likely also preserve jobs in the Milwaukee area as KPS has reached a new contract with the union representing area workers. On the other hand, shareholders of the company will receive no proceeds from the sale, leaving them with a complete loss.
Here are some of the key figures and data points behind the Briggs & Stratton saga:
$550 million
The price KPS is paying for nearly all of Briggs & Stratton’s assets. The private equity firm agreed to serve as the stalking horse bidder and to provide a portion of the financing for Briggs to continue operating during the bankruptcy case.
Zero
The number of qualifying bids Briggs & Stratton received in addition to the KPS offer, prompting the company to cancel its planned auction.
11%
The portion of Briggs & Stratton’s annual sales represented by the parts of the business the company did receive bids for. Two strategic buyers and one financial buyer submitted offers for the Allmand, Billy Goat and standby power portions of Briggs. Those offers were not considered qualifying bids.
7 to 10 cents per $1
The recovery unsecured creditors are expected to receive from the sale of Briggs & Stratton. The company’s attorneys originally expected there would be no recovery for unsecured creditors if the purchase price didn’t increase from KPS’s initial offer. The potential recovery was made possible by improving business performance, a settlement agreement with creditors, and the ability to close the deal quickly.
$195 million
The approximate amount of outstanding notes that were set to mature in December 2020. The looming maturity moved the company to seek new financing and helped push the company into bankruptcy. The unsecured creditors holding those notes stand to recover between $13 million and $19 million.
