New York, NY (March 23, 2012) -- KPS Capital Partners, LP ("KPS") announced today that its portfolio company, HHI Group Holdings, LLC (“HHI”), completed its seventh successful recapitalization since its creation. The proceeds of the recapitalization – funded by a combination of a $50 million upsizing of the Company’s term loan, cash on hand and the Company’s asset based revolving credit facility – were used to fund a $70 million cash distribution to stockholders.

Following the seventh recapitalization, HHI remains conservatively capitalized and has the continued support of KPS, its majority stockholder. KPS and minority stockholders, including MC Capital Inc., a subsidiary of Mitsubishi Corp., and HHI management, continue to own 100% of HHI’s outstanding common stock.

HHI has distributed over $418.8 million of cash to its stockholders since its creation in 2006.

Financing for the transaction was provided by a syndicate of banks and institutional investors with Bank of America Merrill Lynch and Goldman Sachs acting as Lead Arrangers on the upsizing of the Company’s term loan.

Jenner & Block LLP served as legal counsel to HHI with respect to the transaction.

About HHI Group Holdings, LLC

HHI Group Holdings, LLC ("HHI"), through its Jernberg Holdings, LLC, Impact Forge Group, LLC, HHI FormTech, LLC, Kyklos Bearing International, LLC (“KBI”) and Cloyes Gear and Products, Inc. subsidiaries, is the largest independent manufacturer of highly-engineered symmetrical and asymmetrical forged parts for various power train and wheel-end applications, a leading manufacturer of wheel bearings, and one of the few manufacturers of engine timing drive systems for the North American automotive industry. With over 3,000 employees, HHI is headquartered in Royal Oak, Michigan and operates 15 manufacturing facilities located in Arkansas, Illinois, Indiana, Michigan and Ohio. For more information, please visit www.hhigroupholdings.com.