Code Hennessy & Simmons LLC (“CHS”) announced today that it has made a majority equity investment in Penhall International Corporation (“Penhall”), the only national provider of concrete cutting, breaking and excavation and highway grinding services in the United States with the first or second market position in the majority of its served markets. The transaction represents a partnership between CHS and the senior management of Penhall, who made a significant equity investment alongside CHS. Funds for CHS’ investment in Penhall come from CHS Private Equity V LP, a $1.3 billion investment fund formed in 2005.

With over 800 skilled employees who operate an equipment fleet of 750 revenue producing units, Penhall provides a broad range of concrete- and asphalt-related services that generally are part of large projects in the non-residential building construction and infrastructure markets. Its customers include over 15,000 local and national general contractors, industrial companies, government entities and municipalities. Based in Anaheim, California, Penhall has 37 branch locations in 17 states. For more information on Penhall, please refer to the company’s Web site at www.penhall.com.

John Sawyer, President and CEO of Penhall, said, “My team and I are proud to have the endorsement of CHS, an experienced investor in infrastructure-related industries. With a long and successful track record in businesses like ours, CHS brings resources and expertise that compliment the skill set of our management team. I am eager to work with CHS to leverage our national footprint, broad service offering and outstanding safety record and make Penhall the leading concrete services provider in the United States.”

Dan Hennessy, Partner at CHS, said, “CHS looks forward to a successful partnership with John Sawyer and the Penhall management team. The positive prospects for non-residential building and infrastructure spending provide an attractive environment for Penhall to lead the consolidation of the fragmented concrete services market. With a larger footprint and broader capabilities, Penhall will be better equipped to provide reliable, timely and cost-competitive service to the thousands of contractors and government agencies it serves.”

CHS’ investment in Penhall builds on the firm’s deep experience in a broad range of infrastructure-related investments. Through Code Hennessy & Simmons IV LP, a $1.0 billion investment fund formed in 1999, CHS is the majority shareholder in: American Asphalt & Grading Company, the leading provider of integrated construction services to the Southern Nevada residential home building market; American Reprographics Company, the leading reprographics company in the United States; and Gundle SLT/Environmental, a leading designer and manufacturer of geosynthetic lining solutions used in the containment and management of solids, liquids and gasses. Through CHS Private Equity V LP, CHS is also the majority shareholder in LVI Services, Inc., the nation’s largest and fastest growing remediation and facilities management firm.

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. The firm’s investment in Penhall is part of CHS’ continuing Infrastructure Investment Initiative.