on 14 Feb 2023
Princess CEO Antony Sheriff says the new investment will accelerate growth and strengthen the brand's portfolio
On February 13, KPS Capital Partners, LP (“KPS”) announced an agreement to acquire a controlling equity interest in Princess Yachts, following previous media reports on the purchase. The KPS announcement noted that current stockholders will retain ownership and that the deal will be completed in the first quarter of 2023.
Princess Yachts has approximately 3,200 employees and operates five manufacturing facilities in Plymouth, United Kingdom. The brand has an extensive dealer network in the Asia-Pacific.
“KPS’ investment will accelerate Princess’ growth trajectory and fund numerous investments for its future. We look forward to working with Princess’ existing stockholders, Chief Executive Officer Antony Sheriff, the senior leadership team and the talented employee base at Princess Yachts,” said Ryan Harrison, a partner of KPS Mid-Cap Investments.
Antony Sheriff, chief executive officer of Princess Yachts, said that Princess had a current order book of US$1 billion, with model lines sold into 2025.
“KPS and the Princess Yachts team are deeply committed to investing in the company’s future while continuing to further strengthen our portfolio of best-in-class motor yachts,” said Sheriff. “Under KPS’ ownership, we will accelerate a range of growth and operational initiatives to build upon our long and successful history.”
In its own statement announcing the KPS investment, Princess Yachts noted it had already announced expansion plans last year as part of the successful bid by Plymouth City Council to create a Freeport in the area. The new investment will support this plan and reinforce Plymouth’s position as an international marine centre.
KPS focuses on 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 firm says that its investments do not principally rely on financial leveraging.
The KPS Funds’ portfolio companies have aggregate annual revenues of approximately $22 billion, operate 232 manufacturing facilities in 27 countries, and have approximately 53,000 employees, directly and through joint ventures worldwide.