PANOLAM ANNOUNCES AGREEMENT TO ACQUIRE NEVAMAR HOLDCO, LLC
Shelton, CT January 31, 2006 -- Panolam Industries International, Inc., a portfolio company of private equity firm Genstar Capital, LLC, has announced that it has entered into a definitive agreement to acquire all of the outstanding equity securities of Nevamar Holdco, LLC, the parent of Nevamar Company, LLC ("Nevamar"), from investment funds managed by Kohlberg Management IV, LLC and the other current owners.
Nevamar designs and sells decorative laminates used in the commercial and residential furniture, fixtures and cabinet markets, as well as the graphics arts industry. Nevamar features brand names including Nevamar®, Pluswood™, Vinylface™, Lamclad™, and Quinella™. The transaction is expected to close as early as the end of February 2006.
"This is a very exciting acquisition for Panolam," said Robert J. Muller, Jr., Chairman, CEO and President of Panolam Industries. "Our acquisition of Nevamar further develops our 'one-stop shopping' strategy by expanding our decorative overlay product line, and the acquisition will provide the combined company with expanded capacity and improved cost and supply chain efficiencies. We believe that the transaction will enable us to serve our collective clients better, as well as to capitalize on the many market opportunities that will become available to us as a result of this acquisition."
"The acquisition of Nevamar represents a significant opportunity for Panolam to expand its product offerings and to maximize operating efficiencies," said Jean-Pierre L. Conte, Chairman and Managing Director of Genstar Capital. "We are pleased to work with a management team that is not only capable of growing the company organically, but is also able to execute major strategic acquisitions."
Genstar Capital and private equity firm The Sterling Group, L.P. finalized their acquisition of Panolam on September 30, 2005.
About Panolam Industries International, Inc.
Panolam Industries (www.panolam.com), is a market leader and innovator in the decorative laminate industry. Our products, which are marketed under the widely recognized Panolam® and Pionite® brand names, are used in a wide variety of residential and commercial indoor surfacing applications, including kitchen and bath cabinets, furniture, store fixtures, case goods, and other applications. High pressure laminates ("HPL"), thermally-fused melamine ("TFM"), fiber reinforced laminate ("FRL™"), Leatherlam®, Conolite® aircraft laminates, and our engineered laminates are utilized as durable and economical alternatives for natural surfacing materials such as wood, stone and ceramic. A typical customer or end-user of decorative overlays might utilize TFM, HPL, FRLTM or Leatherlam® for different surfaces of the same project. As a vertically integrated manufacturer, Panolam produces decorative surfaces that offer unparallel quality, variety and flexibility to customers worldwide.
About Genstar Capital, LLC
Based in San Francisco, Genstar Capital (www.gencap.com)is a private equity investment firm that makes leveraged investments in quality middle-market companies. Genstar Capital works in partnership with the management to transform its portfolio companies into industry-leading businesses. With more then $900 million of committed capital under management and significant experience investing in businesses, Genstar focuses on selected segments of the life sciences, business services, and industrial technology sectors.
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This press release contains certain "forward-looking statements" under federal securities laws. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "may," "believe," "will," "expect," "project," "estimate," "anticipate," "plan" or "continue." These forward-looking statements are based on the estimates and assumptions of our management and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. These factors include, but are not limited to: economic conditions affecting the decorative laminate industry; competitive pressures, including new product developments or changes in competitors' pricing for products; our inability to retain and attract customers; changes in, or a failure or inability to comply with government regulations and environmental, health and safety requirements; unforeseen operational difficulties including difficulties implementing our plans and other improvements to property, plant and equipment; and the loss of key personnel or our inability to attract and retain new qualified personnel.
These forward-looking statements speak only as of the date of this press release. We are under no duty or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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