Genstar Capital Partners II, L.P. Sells Controlling Interest in Panolam Industries Holdings, Inc. to The Carlyle Group
11/24/1999
Contact: Genstar CapitalAndrea Ginsberg(415) 664-4680aginsberg@gencap.comNovember 24, 1999- Genstar Capital Partners II, L.P. of San Francisco and The Carlyle Group of Washington D.C. jointly announced that they have entered into a recapitalization transaction under which an affiliate of The Carlyle Group has acquired a controlling interest in Panolam Industries Holdings, Inc. from Genstar. The transaction is valued at approximately $402 million, excluding fees and expenses. The consideration is compromised of $175 million for the purchase of equity, the refinancing of approximately $92 million of senior bank debt and the assumption of $135 million of 11?% Senior Subordinated Notes.Robert J. Muller, Jr. will continue to lead Panolam as President and Chief Executive Officer. As a result of the transaction, an affiliate of The Carlyle Group owns approximately 93% of Panolam’s common stock, and Genstar and Mr. Muller will own the remaining common stock.Panolam is the North American market leader in the design, manufacture and distribution of decorative thermally-fused melamine panels [low pressure laminates] and high pressure laminates, which are used as durable and economical substitutes for natural surfacing materials such as wood, stone and ceramic. Panolam’s products are used in a wide variety of residential and commercial indoor surfacing applications, including kitchen and bath cabinets, furniture, store fixtures, flooring and displays, work surfaces, countertops and other specialty applications. According to Robert J. Muller, President and Chief Executive Officer of Panolam, “Panolam has progressed from being a regional specialty laminates manufacturer to a leading North American laminates manufacturer and marketer of a full line of decorative overlays. Our hardworking and dedicated employees are responsible for the Company’s successes.” The company, headquartered in Shelton, CT, has 1,400 employees.Genstar Capital LLC is a private-equity investment firm that was formed to make control-oriented equity investments, structured as leveraged buyouts or growth financings, in middle market companies.The Carlyle Group, founded in 1987, is a Washington, D.C.-based global private equity firm with over $5 billion under managment that originates, structures and acts as lead equity investor in managment-led buyouts, private placements and venture capital transactions.