Genstar Capital to Purchase Fort Dearborn Company
6/20/2006
For additional information:Genstar CapitalChris Tofalli(914) 834-4334ctofalli@gencap.comSAN FRANCISCO — June 20, 2006 — Private equity firm Genstar Capital, LLC today announced that it has signed a definitive agreement to acquire substantially all the assets of Illinois-based Fort Dearborn Company, a leading provider of decorative labels to the consumer goods industry. Fort Dearborn management, along with certain selling shareholders, will also participate in the company’s ownership. The transaction is expected to close at the end of June or early July. Financial terms were not disclosed.As part of the transaction, Fort Dearborn’s current chief operating officer, Michael Anderson, will assume the role of president and chief executive officer. Richard Adler, Jr., the company’s current president and chief executive officer will maintain a position on Fort Dearborn’s board of directors and will serve as an advisor to the company.“I truly believe Genstar’s acquisition of Fort Dearborn is the best outcome for selling shareholders, customers, and associates of our company,” said Anderson. “With Genstar’s support, we are excited to grow Fort Dearborn’s business profitably and to continue to provide our customers with high-quality products and services.” Fort Dearborn specializes in cut and stack, pressure sensitive, and shrink sleeve label solutions for the beverage, food, household products, paint and coatings, personal care, and private label/retail markets. Founded in 1925 as a single press shop in Chicago by Nick Adler, Jr., Fort Dearborn now operates out of six facilities nationwide and is headquartered in Elk Grove, Ill. “Genstar has spent the past year evaluating opportunities in the decorative label industry, and we believe that Fort Dearborn is the most attractive platform company in this space,” said Richard Hoskins, managing director of Genstar Capital. “We are backing the best and strongest management team in the industry, and with them we will begin identifying selective add-on acquisitions.”“Genstar’s investment in Fort Dearborn represents a significant milestone in our evolution from a family-run organization, as well as a vote of confidence in the dedication and accomplishments of all our associates,” said Richard Adler, Jr. “With Genstar’s financial backing and commitment, we will be able to make aggressive strategic investments to solidify Fort Dearborn’s position as a true leader in the label industry.”Bank financing for Genstar’s acquisition of Fort Dearborn is being led by Jefferies & Company, Inc., and mezzanine debt financing is being provided by Caisse de d