Genstar Capital Portfolio Company, Panolam Industries, Announces Acquisition
2/1/2006
For additional information:
Genstar Capital
Chris Tofalli
(914) 834-4334
ctofalli@gencap.com
SAN FRANCISCO—February 1, 2006—Private equity firm Genstar Capital, LLC today announced that portfolio company, Panolam Industries International, Inc., has entered into a definitive agreement to acquire all of the outstanding equity securities of Nevamar Holdco, LLC, the parent of Nevamar Company, LLC. The transaction is expected to close as early as the end of February 2006.
With four manufacturing and six distribution centers located throughout the United States, Nevamar designs and sells decorative laminates and other surfacing materials used in commercial and residential furniture, fixtures, and cabinet markets, as well as the graphic arts industry. Nevamar features brand names including Nevamar®, Pluswood™, Vinylface™, Lamclad™, and Quinella™. In 2005 Nevamar generated estimated revenues of approximately $200 million.
“This is a very exciting acquisition for Panolam,” said Robert J. Muller, Jr., chairman, CEO and president of Conn.-based Panolam. “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. The company’s products, which are marketed under the widely recognized Panolam((R)) and Pionite((R)) 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 Panolam’s 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, FRL or Leatherlam® for different surfaces of the same project. As a vertically integrated manufacturer, Panolam produces decorative surfaces that offer unparalleled 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 management to transform its portfolio companies into industry-leading businesses. With more than $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.