H.I.G. Capital News
H.I.G. Capital LLC
1001 Brickell Bay Drive
Miami, FL 33131
H.I.G. Capital Announces Recapitalization of Linden Lumber Company
MIAMI - April 8, 2008 - H.I.G. Capital, a leading global private equity firm, announces the acquisition by its affiliate of Linden Lumber Company, Ltd. ("Linden" or "Company"). Headquartered in Linden, AL, the Company is a leading manufacturer of Southern hardwoods including red oak, white oak and ash with vertically-integrated operations in procurement, sawmills, kiln-drying and logistical support. Founded in 1955 the Company supplies products for custom cabinetry, furniture, molding, and flooring applications under the "Red Crown" brand. With excess of 3 million board feet of kiln capacity and over 80 million board feet of production capacity, it is one of the largest hardwood sawmill facilities in the Southern US.
Linden is H.I.G. Capital's fourth acquisition in the sector, following the formation of American Hardwood Industries ("AHI") through the simultaneous acquisitions of Rossi American Hardwoods and Hardwood Lumber Manufacturing, in October 2007 and recapitalization of Augusta Lumber in December 2006. Ted Rossi, Chief Executive Officer of AHI co-invested in the deal with H.I.G. and as Chairman will provide post-deal oversight. The Company's day to day operations will continue to be run by Linden President Hugh Overmyer. In discussing the transaction Mr. Overmyer, son of founder and recognized industry leader Don Overmyer, said, "H.I.G. and Ted Rossi understand the challenges facing our business and appreciate the tremendous opportunity we have to provide the highest quality products in the industry. We have recently made significant investments in efficiencies and quality control to ensure we are able to offer our customers the consistent quality that the Red Crown brand is known for. We are fortunate to have partners that understand the sector and have the financial resources to help us execute our growth plan."
Ted Rossi commented, "We are very excited about working with Hugh and his management team to build on Linden's tradition of superior quality and market leadership in the South. Linden's Southern hardwood products strategically complement AHI's diverse product offering and will be very attractive to many of AHI's international customers." Roman Krislav of H.I.G Capital, added, "Linden is among the most respected lumber manufacturers in the US and is well-positioned to benefit when sector fundamentals improve. We look to continue to partner with outstanding management teams and acquire trophy assets to increase our exposure to the sector."
About H.I.G. Capital
H.I.G. Capital is a leading global private equity investment firm with more than $7.5 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, and San Francisco in the U.S., as well as affiliate offices in London, Hamburg and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding, H.I.G. invested in and managed more than 200 companies worldwide. The firm's current portfolio includes companies with combined revenues in excess of $7 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.