Code
Hennessy & Simmons LLC (“CHS”) announced
today that it has made an investment from CHS Private Equity
V LP, in partnership with senior management, in Kranson Holdings,
Inc. (“Kranson”). The company is the leading
full-service distributor of outsourced rigid packaging solutions
in North America. Founded in 1902 and headquartered in St.
Louis, Missouri, Kranson operates under the trade names TricorBraunTM
and Caliber Wine Group. Kranson provides a broad assortment
of more than 32,000 rigid packaging containers and related
components as well as comprehensive package design, engineering
and development services, global sourcing and logistics management.
Kranson leverages the capabilities of a global network of
over 600 suppliers to meet the unique packaging requirements
of a diversified base of 6,500 customers in a variety of
end-markets including personal care, healthcare, food, wine
and household and industrial chemicals.
The investment represents the second time CHS has partnered
with Ken Kranzberg (Chairman), Keith Strope (CEO and President),
and various senior managers. Code Hennessy & Simmons
IV LP, a $1.0 billion investment fund formed in 1999, acquired
Kranson in October 1999. During CHS’ ownership, Kranson
generated outstanding financial performance while further
consolidating the rigid packaging distribution industry.
In July 2004, CHS sold Kranson and generated an annual return
in excess of 30.0%.
Keith Strope, President and CEO of Kranson, said, “In
our previous relationship with CHS, we shared the same goals:
create equity value through the execution of our superior
business model and through accretive acquisitions. We exceeded
expectations, and appreciated the professional, straight
forward relationship we had with the CHS team. We look forward
to our second partnership.”
Dave Hawkins, Partner at CHS, said, “Kranson is an
exciting investment opportunity for CHS as it fits squarely
into our distribution and packaging investment initiatives.
No other rigid packaging distributor can match the depth
of Kranson’s global sourcing capabilities, the breadth
of its diverse customer base, and the effectiveness of its
comprehensive design, engineering and logistics services.
We are excited to have the opportunity to partner with such
a high caliber management team and we look forward to continuing
to build on Kranson’s industry leading position.”
The investment in Kranson complements CHS’ portfolio
of investments in the distribution and packaging industry,
which currently include: Beacon Roofing Supply, Inc. (Nasdaq:
BECN), a distributor of residential and commercial roofing
products; The Hillman Group, a distributor of fasteners,
key blanks, signage and other small hardware components;
Hoboken Wood Flooring Corporation, a distributor of hard
surface flooring; Home Acres Building Supply Co., a distributor
of gypsum wallboard in the Upper Midwest; Houston Wire and
Cable Company (Nasdaq: HWCC), a distributor of specialty
wire and cable; SunSource, a distributor of fluid power products
and systems; and TruckPro, Inc., a distributor of aftermarket
parts and accessories for heavy-duty vehicles.
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 Kranson come from CHS Private Equity V LP, a $1.3 billion
investment fund formed in 2005.
For more information on Kranson, please refer to the company’s
Web site at www.tricorbraun.com. |