KCP Income Fund Acquires APG

On October 21, 2005, KCP Income Fund completed the acquisition of APG, Inc. of Elkhart, Indiana for a purchase price of approximately US$73 million. Including the acquisition of APG, KCP is one of North America's largest custom manufacturers of consumer products in the laundry, household cleaners, over-the-counter medicated and health and beauty care categories for both brand name and retail brands.

The transaction was funded in part from the proceeds of a C$81,400,000 private placement of units through a syndicate of underwriters led by TD Securities Inc., and from its existing credit facility with a syndicate of lenders led by the Toronto-Dominion Bank.

KCP Income Fund was represented by Goodmans LLP in connection with the M&A transaction, the private placement and the credit facility. The Goodmans team was led by Stephen Bloom (M&A), Allan Goodman (corporate/securities) and Mark Surchin (banking), and included Steve Cohen and Richard Warren (corporate/securities), Steven Kresak (banking) and Alan Bowman (tax). The Fund was represented in the
US by Goodwin Procter LLP with a team that included William Whitledge and Kelsey Lemaster (tax), Jon Schneider (banking), Laura Hodges Taylor, Yoel Kranz and Joe Theis (corporate) and Sam Richardson (real estate); and in Indiana by Baker & Daniels LLP with a team that included Glenn Killoren, James Brotherson and Krista Zimmerman. The Fund was represented on antitrust issues in the US by Howard Morse, Robin Sampson and Joanne Lewers of Drinker Biddle & Reath LLP.

The underwriters for the public offering were represented in Canada and the US by Torys LLP with a team led by Phil Brown and Matthew Cockburn in Toronto and included Gavin Sinclair and Saro Sarmazian (corporate/securities), Corrado Cardarelli (Canadian tax), Gary Gartner and Gregg Benson (US tax) and Jeffrey Gracer (US environmental).

The syndicate of banks was represented by Osler, Hoskin & Harcourt LLP with a team led by Michael Matheson that included Dale Seymour (banking). KCP's bondholders were represented in the US by Chapman and Cutler LLP with a team led by Neil Mann that included Charles Kolin (corporate finance) and Susan Rollins (real estate); and in Canada by McCarthy Tétrault LLP with a team led by David Woollcombe that included Justin Lapedus (banking).