H.I.G. Capital News


John Black

Mike Phillips

John Tatum

H.I.G. Capital, L.L.C.
855 Boylston Street, 11th Floor
Boston, MA 02216
P 617.262.8455

H.I.G. Capital Completes Investment in HFI, Inc.

BOSTON - January 10, 2006 - H.I.G. Capital, a Miami-based private equity firm, announced today that it completed a strategic investment in HFI, Inc ("HFI" or the "Company") in partnership with Walt Dennis, HFI's current owner and Chief Executive Officer. HFI is an integrated manufacturer, assembler and distributor of a wide range of automotive interior components for Tier I suppliers to the automotive industry. HFI is headquartered in Columbus, Ohio with additional manufacturing facilities located in Arab, Alabama, and internationally in both Monclova and Obregon Mexico.

HFI's management team, led by CEO Walt Dennis, has extensive experience in the automotive industry, building and strengthening relationships with the highly-successful Japanese Transplant auto manufacturers and their Tier I suppliers. HFI's products are found on many of the largest and most rapidly-growing vehicle nameplates in the U.S. including Honda's Accord, Civic, Odyssey and Element, the Nissan Altima, the Toyota Camry and Sienna and the Subaru Outback. The Company's capabilities include expert cutting, sewing, fabrication and assembly related to the production of components such as: headrests, armrests, seat trim, console covers, seatback pockets and other interior components.

"In H.I.G., we found a great partner with the expertise and financial resources to work seamlessly with our management team to help us substantially grow our business." said Walt Dennis, CEO of HFI.

John Black of H.I.G. commented, "We are very pleased to have had the opportunity to partner with Walt and a very strong existing HFI management team. The company is exceptionally well-positioned to capitalize on the competitive dynamics in the U.S. automotive industry, in particular the expected continued growth of the "Transplant" manufacturers (foreign OEMs with U.S. manufacturing operations). Walt and his management team have done an excellent job of growing this business during turbulent times in the automotive market and we intend to help the Company build on this legacy by continuing to increase HFI's penetration into both new and existing customers."

Mike Phillips, also of H.I.G. Capital, added: "HFI is a market leader within its niche and is managed by an excellent operational team that has been together for over eighteen years. Additionally, the Company possesses a loyal and diverse customer base. H.I.G. is very excited to be able to partner with HFI's management team to help grow an already very successful business."

About H.I.G. Capital, L.L.C.
H.I.G. Capital, L.L.C. is a leading private equity and venture capital investment firm with more than $2 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, and San Francisco, 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, and in promising early-stage technology companies. The firm currently has an interest in more than 65 companies with combined revenues in excess of $5 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.