Vancouver, B.C. June 15, 2005 – Yellow Point Equity Partners LP (“Yellow Point”) is pleased to announce the closing of their investment in building materials manufacturer, CCI Industries Ltd. (“CCI” or “the Company”). Proceeds of the financing will be used to fund the recapitalization and future growth of CCI.
CCI is the leading manufacturer of segment retaining wall systems and concrete masonry products in Western Canada, with an approximate 60% market share. With manufacturing facilities located in Edmonton, Vancouver, and Winnipeg, CCI products are sold through DIY retailers such as Home Depot, Rona and Home Hardware under the Allan Block brand name.
Consistent with Yellow Point’s model of co-investing with value added participants, Yellow Point invited an investor group with substantial experience in the building materials industry to co-invest on this transaction and participate at the Board level. In addition, David Chapman, Managing Partner of Yellow Point, will also serve on the Board.
“We are looking forward to working with Yellow Point,” said Norm Duplessis, CFO of CCI. “Their operational experience and financial expertise will be invaluable in assisting us in taking CCI to the next level.”
“We are very optimistic about the future prospects for CCI” said Mr. Chapman. “The Company’s leading market position, strong distribution network, and recognized brand are what attracted us to CCI. With the addition of new capital, a seasoned Board and key additions to the leadership team, we are confident that significant value will be created for all stakeholders.”
The investment was made in the form of senior subordinated debentures, junior subordinated debentures and common share purchase warrants.
ABOUT YELLOW POINT
Yellow Point Equity Partners is a private equity investment firm with significant operating and investment experience. It invests in outstanding management teams of later-stage growth companies based primarily in western Canada and aims to be the long-term partner of choice for Canada’s leading mid-market companies. Yellow Point’s approach is supportive, hands-off with respect to day-to-day operations and active when it comes to strategic decisions and board work.
For more information, please contact either Brian Begert or David Chapman, or visit www.ypoint.ca.