Davis Polk Advises KPS Capital Partners on Its Acquisition of Substantially All of the Assets of Garrett Motion

Davis Polk is advising KPS Capital Partners, LP on its 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 includes partners John D. Amorosi and Brian Wolfe and associates Nicolas R. Yamagata and Dmitriy Molchanov. The restructuring team includes partner Brian M. Resnick and counsel Josh Sturm. The finance team includes partner Hilary Dengel and associate Jonathan B. Brown. Partner William A. Curran is providing tax advice. Partner Adam Kaminsky is providing executive compensation advice. Members of the Davis Polk team are based in the New York and Washington DC offices.