Code
Hennessy & Simmons LLC ("CHS") today announced it has made
a majority equity investment in American Asphalt & Grading
Company ("AAG"), the leading provider of integrated infrastructure
construction services to the Southern Nevada residential homebuilding
market. AAG provides a suite of site development and preparation
services including excavation, grading, paving, pavement maintenance
and concrete placement for curbs, gutters and sidewalks.
Under
the leadership of President and CEO Paul Robinson, AAG has
evolved from a grading and paving contractor to a sophisticated
provider of integrated construction services in the Southwestern
United States. With strong economic and job growth, a favorable
climate, affordable housing and no state income tax, Las Vegas
has been among the fastest growing metropolitan centers in
the United States for several years. Nevada has experienced
the most rapid population growth in the United States for
18 consecutive years.
"Our partnership with CHS will allow AAG to serve our national
home building clients better," said Robinson. "With CHS' support,
we will cross-sell recently introduced service offerings,
add additional complimentary services and expand our market
presence in Phoenix and other high growth markets."
CHS Partner Richard Lobo said, "The residential
infrastructure construction services market is rapidly growing
and critical to home builders who are outsourcing an increasing
share of non-core activities like site development. With sophisticated
project scheduling and management information systems, a comprehensive
service offering and a track record of outstanding results
under the leadership of Paul Robinson, AAG is uniquely positioned
to extend its leadership in the Southern Nevada market and
successfully expand into other fragmented markets. We look
forward to working with management to grow AAG organically
and through strategic acquisitions."
For more information on AAG, please visit
the company's Web site at www.aaandg.com.
CHS is a Chicago-based private equity firm
specializing in private equity investments and recapitalizations
of middle market companies in partnership with management.
CHS has formed five private equity funds and currently manages
over $2.5 billion of capital. Funds for CHS' investment in
AAG will come from Code Hennessy & Simmons IV LP, a $1.0 billion
investment fund formed in 1999. For more information on CHS,
please visit CHS' Web site at www.chsonline.com. |