Graham Partners Turns Another Key for Hb&G

Graham Partners added on to its platform, HB&G Building Products, by closing the acquisition of Turnkey Millwork, Inc., yesterday. HB&G, acquired by Graham Partners in March 2003, is a rapidly growing, leading manufacturer of specialty millwork, consisting primarily of polymer-based exterior and interior columns, exterior porch posts and rails, as well as medallions and interior moldings. HB&G offers the broadest line of columns in North America. Turnkey Millwork is an architectural millwork company specializing in the manufacture of cellular PVC (“CPVC”) building products located in Raleigh, NC. Because Turnkey was an early entrant in the CPVC column market and continues to be an innovator in the space, the Company has established a wellknown brand name.

Kent Hendricks, CEO of HB&G, states: “The acquisition of Turnkey establishes an immediate presence and brand name in the CPVC column market and further extends our key competitive advantage related to product breadth within the overall column market. With the support of Graham Partners, we continue to look for add-on acquisition opportunities to expand our product offering and solidify our position as a leading supplier of specialty millwork.”

Bill McKee, Managing Principal of Graham Partners, states: “Over the course of our ownership, we have made substantial progress in filling out HB&G’s management team and working with the Company to initiate numerous operational improvements. With its core leadership team in place and many of these operational improvements generating increased efficiencies and operating cash flow, the Company is in a strong position to integrate the Turnkey platform and capitalize on prospects in the CPVC millwork space. We are enthusiastic about the opportunities resulting from the combination of these businesses including sales synergies and an increased geographic presence for Turnkey.”

Although the terms of the transaction have not been disclosed, the acquisition was financed entirely by HB&G’s existing senior debt financing sources, including Merrill Lynch Capital (a division of Merrill Lynch Business Financial Services Inc.), Sovereign Bank and National City Bank.

About HB&G: HB&G Building Products, Inc. is a manufacturer of synthetic and wood specialty millwork, consisting primarily of exterior and interior columns, as well as exterior posts and rails for porch and deck applications. The Company has grown rapidly in recent years as a result of increased demand for synthetic materials at the expense of traditional materials, such as wood and concrete. With a market-leading number of SKUs offered under well-known brand names, which include PermaCast, PermaPorch and PermaRail, and a reputation for superior product quality, HB&G has attained the number one position in the column market and offers the broadest line of columns in North America. HB&G currently operates a manufacturing facility in Troy, Alabama.

About Graham Partners: Graham Partners is a leading, lower middle market industrial private equity firm based in suburban Philadelphia with over $850 million under management. Graham Partners is sponsored by the privately held Graham Group of York, Pennsylvania, an industrial and investment concern with global interests in plastics, packaging, machinery, building products and outsource manufacturing. Graham Partners seeks to acquire industrial companies with revenues between $20 million and $350 million that participate in manufacturing niches where it can leverage its unique combination of operating resources and financial expertise.

FOR FURTHER INFORMATION CONTACT:

Bill McKee (bmckee@grahampartners.net)
Josh Wilson (jwilson@grahampartners.net)
Christina Morin (cmorin@grahampartners.net)
Tel: (610) 408-0500 / Fax: (610) 408-0600
www.grahampartners.net