Although KPS says it works with management teams of acquired companies, it executed a CEO switch at Briggs. The question is how many of Teske's team members will remain under Andrews.
“They’re going to be given an opportunity to prove they can add value,” Peter Coffey, a mergers-and-acquisitions attorney at Michael Best & Friedrich LLP in Milwaukee said generally of KPS' executive plans. “If not, KPS is going to bring folks in who can.”
Divesting product lines
Briggs & Stratton announced in March plans to divest product lines including lawn mowers and other outdoor equipment. At the time the company was losing money and needed to generate cash.
Coffey believes KPS will not necessarily follow through with that plan. He said KPS possesses the financial wherewithal to invest in plants, technology and research and development rather than selling product lines.
“They (KPS) will take a look at each decision that Briggs has announced and decide whether those decisions were based on Briggs’ need for cash or strategically for the well-being of the business,” Coffey said.
To read the full article, click here.