Chicago,
Illinois - On August 27, 2004, Code Hennessy & Simmons
III LP completed the sale of United Central Industrial Supply
Company (“United Central”) to United Central Holding
Company, an entity controlled by The Riverside Company, a
New York-based private equity firm. The transaction resulted
in an attractive IRR to Fund III, which acquired a majority
ownership of the Company in August 1999.
United Central, headquartered in Bristol,
Virginia, began operating in 1974, and now employs approximately
190 people. Through seventeen distribution branches located
in nine states, United Central offers its customers the most
extensive selection of mining supply products in the industry,
including more than 43,000 stock keeping units (“SKUs”)
of roof control, conveyor and idler systems, safety equipment,
mining bits, oil products, equipment parts, and other general
mine supplies from over 800 manufacturers. United Central
is the leading full-service, value-added independent open-market
distributor of consumable mine supplies in North America.
The Company distributes products to underground coal mines
located throughout the Appalachian, Interior, and Western
coal producing regions of the United States and Canada. Over
the course of CHS’ ownership, the CHS investment management
program resulted in the formalization of supply agreements
with several major underground coal producers and the completion
of an acquisition which expanded the Company’s geographic
reach and customer base, and provided United Central with
exclusive distribution arrangements with key suppliers in
the industry.
According to Peter M. Gotsch, a Partner at
Code Hennessy & Simmons LLC, “Thanks to the highly
capable management team, United Central performed well throughout
the general economic downturn and is poised for an exciting
future in the resurgent coal industry.”
Darrell Cole, who assumed the role of President
and Chief Executive Officer of United Central as a result
of this transaction, remarked, “The close working relationship
between the United Central management team and CHS was instrumental
in creating shareholder value. This partnership jointly developed
operational and financial objectives, and the entire United
Central team worked tirelessly to successfully reach those
objectives.”
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