Prospect Partners And Montgomery,
Shelton & Company Acquire Codel, Inc.
Leading Distributor of Home Entry Door Systems Seeks to Expand
Presence in Pacific Northwest
2, 2005: Together with management, Prospect Partners, LLC and Montgomery,
Shelton & Company of Winnetka, Illinois are excited to announce
the formation of Codel Entry Systems, Corp. to acquire Codel, Inc.
of Tacoma, Washington.
Codel is a leading Pacific
Northwest fabricator, assembler, marketer and distributor of pre-hung
steel and fiberglas entry door systems and related accessories for
residential homes. Founded in 1997 by door business veteran Brent
Moss, Codel quickly established a stronghold in the new-home construction
markets in Washington and Oregon, selling its products through both
independent and regional door shops and lumberyards that supply
contractors and home builders.
"Since its inception,
Codel has become well-known for its unique offering in both its
quality products and its superior customer service," says Maneesh
K. Chawla, a Principal at Prospect Partners. "Given Codel's
reputation, product quality and growing customer base, we see a
solid opportunity to expand its presence by opening new locations
in its existing markets, entering new geographies over time and
offering entry door systems through new channels."
Mr. Moss, who will continue
in his current role as President and run the company from its Tacoma
headquarters along with his existing management team, says he is
excited about the opportunities the recapitalization creates.
"Codel has experienced
tremendous growth in recent years," Mr. Moss says. "The
partnership with Prospect Partners and Montgomery Shelton will help
us to better pursue our goals for expansion while simultaneously
maintaining our customer service commitment of three-day delivery
throughout the Pacific Northwest. Both Prospect Partners and Montgomery
Shelton have proven ability to grow branded products, and their
team is compatible with the existing Codel culture and business
Prospect Partners' investment
partner, Montgomery, Shelton & Company, is a highly experienced,
operationally-oriented buyer that has completed 10 acquisitions
since its 1984 founding. Partners Mead Montgomery and David Shelton
offer a broad base of investment knowledge plus key operating experience
in companies in a variety of industries.
"We are very excited
to partner with Brent Moss and the Codel team," Mr. Montgomery
says. "They are tremendously experienced in their market niche
and are an excellent operator with unparalleled commitment to quality
and customer service."
In pursuing their growth
objectives, Prospect Partners, Montgomery Shelton and Codel management
will actively pursue add-ons of other manufacturers and distributors
of pre-hung doors.
Mr. Chawla will serve
the company's Board of Directors along with Mr. Montgomery, Mr.
Shelton and Mr. Moss. Prospect Partners' Principal William V. Glastris,
Jr. will serve the company as a Director and Chairman.
Codel Entry Systems, Corp.
is the fifth platform company of Prospect Partners II, L.P., the $165
million private equity fund that closed in June, 2004. The Fund's
other platform companies include Pipp Mobile Storage Systems, a
Walker, Michigan-based manufacturer, designer and installer of movable
shelving and storage systems; Chicago-based Kronos Products, Inc., a
leading Greek foods manufacturer; Brazoria, Texas-based Industrial
Hoist Services, LP, a leading national provider and lessor of hoists
used in industrial applications; and Superior Tool Holding Company,
a leading manufacturer and distributor of a complete range of professional
and consumer pipe-working and specialty plumbing tools sold nationwide.
About Prospect Partners
Prospect Partners, LLC
of Chicago, Illinois is a leading investor in unique lower-middle-market
companies, managing two private equity funds totaling $270 million.
Since its founding in 1998, Prospect Partners has focused on management-led
leveraged acquisitions of small niche leaders with revenues typically
between $10 and $30 million; the firm has invested in more than
45 leading companies within many niche consumer, commercial, specialty
distribution and service markets throughout the United States.