H.I.G. Capital News


Brian Schwartz
Managing Director

Roman Krislav

H.I.G. Capital, L.L.C.
1001 Brickell Bay Drive
Miami, Florida 33131
P 305.379.2322

H.I.G. Capital Announces the Formation of American Hardwood Industries

MIAMI - October 15, 2007 - H.I.G. Capital, a leading global private equity firm, announced today the formation of American Hardwood Industries, Inc. ("AHI" or "Company") through the simultaneous recapitalization of Rossi American Hardwoods ("Rossi") and Hardwood Lumber Manufacturing ("HLM"). Headquartered in Cromwell, CT and with operations in strategically favorable locations for hardwood lumber, American Hardwood Industries is a leading lumber products manufacturer with a diverse product portfolio, including high grade white oak, cherry, hard maple, red oak and other species. Rossi and HLM are vertically-integrated suppliers with robust operations in timber-rights purchasing, sawmills, kiln-drying and logistical support. The Company's products are used heavily in the remodeling market with end uses such as high-end flooring, custom cabinetry, furniture and molding. The Company is a leading exporter of premium American hardwoods to over 40 international markets. AHI has over 150 million board feet of production capacity, making it one of the largest producers in the US.

Founded in 1925, Rossi American Hardwoods is one of the premier manufacturers in the US and one of the leading suppliers to over forty international markets. Rossi American Hardwoods is led by Ted Rossi, who will be Chairman and Chief Executive Officer of AHI. Hardwood Lumber Manufacturing, strategically located in the best areas in the US for high grade cherry and hard maple, is led by David Marshall who will be President and COO of AHI.

"We are very excited about partnering with one of the top management teams in the sector. Ted is an effective operator and industry leader and Rossi American Hardwoods has developed a reputation as a top quality supplier in international markets. HLM offers a sophisticated, metrics-oriented and disciplined, management approach that is unique in the industry" said Brian Schwartz, Managing Director of H.I.G Capital. Roman Krislav of H.I.G Capital added, "Rossi and HLM have consistently invested in quality equipment and management personnel. We believe American Hardwood Industries is well-positioned to benefit from an improvement in sector fundamentals. We look to continue to partner with outstanding management teams and increase our exposure to the sector." This is H.I.G. Capital's second investment in the sector, after the recapitalization of Virginia-based Augusta Lumber in December 2006.

H.I.G. partnered with management to consummate the transaction. "H.I.G. distinguished itself in really understanding the business and moving quickly to get a deal done. As we look to add to our platform, we are fortunate to have a partner that understands the sector and has the financial resources to help us execute our growth plan and support our acquisition strategy" said Ted Rossi.

About H.I.G. Capital, L.L.C.
H.I.G. Capital L.L.C. ("H.I.G.") is a leading global private equity investment firm with more than $4 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. has completed more than 75 transactions. The firm currently manages a portfolio of more than 50 companies with combined revenues in excess of $7 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.