Code
Hennessy & Simmons LLC ("CHS") announced today that it has
made a majority equity investment in Hoboken Wood Flooring
Corporation ("Hoboken"), the largest independent distributor
of hard surface flooring in the United States. CHS' investment
represents a partnership between CHS and Hoboken's Chief Executive
Officer Ira Lefkowitz and President Joel Lefkowitz.
"My
brother Ira and I are eager to work with CHS," said Joel Lefkowitz.
"We chose CHS to be our partner because of the firm's successful
track record with distribution companies. As we pursue new
market opportunities and continuously improve our distribution
network, CHS' extensive experience with similar companies
will help Hoboken generate outstanding results."
Founded in 1923 in Hoboken, NJ, Hoboken currently
has 26 locations and over 650 employees. Hoboken distributes
a broad selection of domestic and exotic hardwoods, including
cherry, walnut, mahogany, bamboo, maple, white oak and teak
from leading domestic and international manufacturers. The
company also sells ceramic tile, resilient vinyl and engineered
laminate flooring products. Hoboken has approximately 6,500
active customers including large and small contractors, flooring
retailers, national home centers and other distributors. Hoboken
operates major distribution centers in Wayne, NJ, Stoughton,
MA, Albany, NY, Orlando, FL and Atlanta, GA that support satellite
distribution centers throughout the Eastern Seaboard and Texas.
"Hoboken represents an excellent investment
opportunity for CHS," said Ed Lhee, Managing Director at CHS.
"Positive industry dynamics are creating opportunities for
Hoboken to capitalize on increased demand for hardwood flooring,
to expand the company's geographic reach and to leverage global
sourcing to offer the most competitive product line in the
industry. We look forward to working with Ira and Joel Lefkowitz
to realize Hoboken's tremendous potential. The company's outstanding
record of growth and cash flow generation validates their
leadership."
The
investment in Hoboken complements CHS' portfolio of investments
in the distribution industry, which currently include Beacon
Roofing Supply, Inc., a leading distributor of residential
and commercial roofing products; The Hillman Group, a leading
distributor of fasteners, key blanks, signage and other small
hardware components; and Houston Wire and Cable Company, a
distributor of specialty wire and cable.
"CHS' investment in Hoboken is consistent
with our strategy to invest in opportunities where CHS' expertise
creates unique benefits for business owners, "said Peter Gotsch,
partner at CHS. "Our familiarity with middle market distribution
companies allowed CHS to meet the sellers' objectives while
working constructively with management to set strategic and
operating priorities."
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
Hoboken will come from Code Hennessy & Simmons IV LP, a $1.0
billion investment fund formed in 1999. |