Briggs & Stratton stalking horse bid, asset sale procedures approved

By Caroline Salls

Pittsburgh, Aug. 20 – Briggs & Stratton Corp. received court approval of the bid procedures for the proposed $550 million sale of substantially all of its assets, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Eastern District of Missouri.

As previously reported, Briggs & Stratton entered into a definitive stock and asset purchase agreement with KPS Capital Partners, LP under which an affiliate of KPS will acquire the company’s assets for $550 million in cash and assume customer, employee and vendor liabilities.

The KPS affiliate will act as the stalking-horse bidder through a court-supervised sale process. The sale agreement is subject to higher or better bids from other potential purchasers.

Under the timeline approved by the court, competing bids are due by 6 p.m. ET on Aug. 28. An auction will be held on Sept. 1, if necessary, and the sale hearing is scheduled for Sept. 15.

Competing bids must at least equal the amount of the stalking horse bid, plus a $16.5 million termination payment and $2.75 million expense reimbursement to be paid to KPS if it is not ultimately the winning bidder, plus a $1 million initial overbid amount.

Bids at auction must also be made in minimum increments of $1 million.

Briggs & Stratton is based in Milwaukee and makes gasoline engines for outdoor power equipment. The company filed bankruptcy on July 20 under Chapter 11 case number 20-43597.

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