The Carlyle Group Sells Panolam to Genstar Capital

Washington, DC – Global private equity firm The Carlyle Group today announced that it has entered into a definitive agreement to sell Panolam Industries International, Inc. to an investor group, including Genstar Capital LLC, The Sterling Group, L.P. and management. Shelton, CT-based Panolam designs and manufactures decorative laminate panels for commercial and residential uses such as cabinets, display cases and office furniture. Carlyle purchased Panolam in November 1999. The transaction is expected to close in the fall. UBS acted as financial advisor to Panolam Industries International. Financial terms were not disclosed.

Carlyle Managing Director Praveen R. Jeyarajah said, "It has been a pleasure to work with CEO Bob Muller and his team. They persevered through the economic slowdown, redoubling their efforts to create efficiencies and satisfy customer needs. I am confident they will succeed with Genstar Capital."

Darren J. Gold, Principal of Genstar Capital, said, "Panolam is a well-managed company with excellent opportunities for continued growth and expansion. We look forward to working closely with Bob and his team to build value and to continue the firm’s upward rise."

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Contacts:

The Carlyle Group, Chris Ullman, (202) 729-5450
Genstar Capital LLC, Andrea Ginsberg, (415) 751-2017
The Sterling Group, L.P., Kelly Boots, (713) 877-8257

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About Panolam

Panolam Industries International, Inc. is the North American market leader and innovator in the decorative laminate panel industry. The company offers an integrated, all-inclusive product array at a broad range of price points, including decorative overlay papers, industrial laminates and specialty resins. Panolam employs more than 1,000 people in its five manufacturing facilities (Huntsville, Ontario; Norcross, GA; Albany, OR; Auburn, ME; Morristown, TN) and three distribution centers (Elkhart, IN; Rancho Cucamonga, CA; Covington, GA).

About Genstar Capital LLC

Based in San Francisco, Genstar Capital (www.gencap.com) is a private equity investment firm that makes leveraged investments in quality middle-market companies. Genstar Capital works in partnership with management to transform its portfolio companies into industry-leading businesses. With more than $900 million of committed capital under management and significant experience investing in businesses, Genstar focuses on selected segments of the life sciences, business services and industrial technology sectors.

About The Sterling Group, L.P.

The Sterling Group is a private equity investment firm founded in 1982 that targets controlling interests in leveraged buyout investments in basic manufacturing, industrial services and distribution companies with enterprise values typically between $100 million and $500 million. Sterling partners with management teams to acquire companies where it has identified specific opportunities to grow and improve the business. Sterling has sponsored the buyouts of 29 portfolio companies and numerous add-on acquisitions for a total transaction value greater than $6.5 billion. For more information visit www.sterling-group.com.

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