Code
Hennessy & Simmons LLC (“CHS”) today announced
a distribution to investors in Code Hennessy & Simmons
IV LP (“Fund IV”) resulting from the recapitalization
of Berkline/Benchcraft LLC (“Berkline”). Based
in Morristown, TN, Berkline is one of the largest independent
suppliers of upholstered furniture in North America. CHS acquired
Berkline in March 2002, investing $61.5 million from Fund
IV. The recapitalization resulted in a distribution of $60.2
million representing a return of approximately 98% of CHS’
original investment.
Berkline
is a leading manufacturer of residential upholstered furniture
in North America. The Company offers the industry’s
broadest selection of upholstered furniture through its two
principal brands, Berkline® and BenchCraft®. The Berkline®
product offering is focused exclusively in motion furniture,
such as reclining sofas, love seats sectionals, and home theater
seating while the BenchCraft® product offering is focused
primarily on stationary fabric and leather upholstered furniture.
Since completing its majority equity investment in Berkline,
CHS has worked closely with Berkline’s management team
to integrate operations, refine Berkline’s operating
model to provide rapid delivery and broad product selection
through a combination of domestic and offshore sourcing, introduce
innovative products and maximize cross-selling opportunities
with the recent opening of the company’s new showroom
in High Point, North Carolina. As a result of these efforts,
Berkline continues to generate strong operating performance,
driven by growth in sales of both Berkline and Benchcraft
branded products.
Bill
Wittenberg, Berkline’s CEO, said “Before making
their investment in Berkline, CHS invested tremendous resources
to understand the furniture industry and Berkline’s
unique business model. At closing, CHS and the management
team understood Berkline’s priority to be rapid deleveraging
with selective investment to position Berkline for an industry
recovery. The completion of the recapitalization is testament
to the successful execution of the investment plan.”
Peter Gotsch, partner at Code Hennessy &
Simmons LLC, said, “CHS is proud of the management team
at Berkline. Led by Bill Wittenberg, the team has generated
outstanding financial results.”
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
four private equity funds and currently manages over $1.5
billion of capital.
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