Graham Partners Raises the Roof

Graham Partners is pleased to announce its acquisition of Henry Company LLC (“Henry”). Graham Partners led the acquisition, partnering with OceanBridge Partners; other investors included management and the former owners of the Company. Henry is a leading manufacturer of roofing and building envelope products and systems, which are critical for managing the flow of air, water, and vapor through the building envelope from foundation to roof – improving a structure’s energy efficiency and sustainability. With one of the largest manufacturing footprints in North America, Henry supplies roof coatings and cements, air and vapor barriers, underlayments and waterproofing products to customers throughout the U.S. and Canada. For more than 75 years, Henry products have protected and enhanced the performance of residential, industrial, commercial and institutional foundations, buildings and structures.

The strategy of Graham Partners is to acquire fast-growing manufacturing-related businesses, which stand to benefit from product or technology substitution trends and raw material conversions within their industries, especially where Graham can utilize its extensive operating resources and industrial network to add value. In Henry’s case, stricter building codes combined with energy efficiency incentives are driving demand for superior performing building envelope solutions, such as those manufactured by Henry. Henry joins an established alliance of Graham Partners holdings, which participate in industries as diverse as aerospace, medical products, and packaging, water management, building products, electronics, and wireless communications devices, among others. Graham Partners seeks to invest not only capital into these businesses, but to utilize its longstanding industry knowledge, resources and contacts to improve operations and promote organic growth.

Graham Partners’ investment thesis for Henry is premised upon Henry’s strong competitive position in multiple niche markets throughout the building envelope; leading portfolio of high performance, energy-efficient products; and the potential for growth as construction markets improve over the next several years. Graham Partners believes Henry’s brand recognition, breadth of product offering, and manufacturing footprint offer meaningful competitive advantages. The Company serves all major regions in the U.S. and Canada through a broad footprint of 11 strategically located manufacturing facilities, enabling Henry to effectively serve national accounts – a key advantage over smaller competitors. Henry also sustains an active R&D program, focused on continuous improvement of existing products as well as innovating new products for the building envelope.

“Under very capable leadership, Henry delivered solid performance over the past several years in spite of the difficult market environment,” stated Rob Newbold, Managing Principal at Graham Partners. “We look forward to working actively with management to enhance Henry’s leadership in building envelope systems through the development of innovative, high performance building solutions and the ongoing commitment to sustainable, profitable growth aided by the resources we have to offer at Graham.”

Brian Strauss will remain President and Chief Executive Officer of Henry, and the existing senior management team will continue to lead the Company following the transaction. Brian Strauss stated, “Henry is a proven leader in innovative building envelope solutions. Our team’s highly developed understanding of the market has enabled us to develop new products to better serve customers’ needs. We are enthusiastic about the partnership with Graham and OceanBridge and look forward to working together.”

Graham Partners led the acquisition of Henry, and is the majority investor. OceanBridge was also integral to the Henry investment and is a significant co-investor, along with management and the Company’s former owners.

About Henry Company LLC (www.henry.com): Headquartered in El Segundo, California, Henry Company is a leader in Building Envelope Systems®. Henry products control the flow of water, vapor, air, and energy through the entire building envelope, from foundation to roof. Henry understands the principles of integrating air and vapor barrier, roofing, and waterproofing systems to ensure superior building performance. Henry professionals offer designers, contractors, and building owners a combination of technical experience and a commitment to provide quality products. For more than 75 years, Henry has been the trusted source for a variety of building solutions.

About OceanBridge Partners (www.ocbrpartners.com): OceanBridge Partners is a new breed of global investment and advisory firm with offices in New York and London. Founded by a small group of senior investment professionals from prominent firms, it applies established private equity skills and techniques to identify and execute investment opportunities both within and outside the remit of the conventional private equity model.

FOR FURTHER INFORMATION CONTACT:

Rob Newbold (rnewbold@grahampartners.net)
William Timmerman (wtimmerman@grahampartners.net)
Christina Morin (cmorin@grahampartners.net)
Tel: (610) 408-0500 / Fax: (610) 408-0600
www.grahampartners.net