Sentinel and management acquire Madill for Cdn $80 million


Management Team of Leading Forestry Equipment Manufacturer Partners with Sentinel to Drive Growth


NEW YORK, June 27, 2005 - Sentinel Capital Partners, a private equity firm that invests in promising, smaller middle-market companies, announced today the acquisition of Madill Inc., a leading manufacturer, marketer and distributor of forestry equipment. Sentinel purchased Madill from Key Equity Capital Corporation, the predecessor fund to Blue Point Capital Partners, and The CECO Group of Companies in a transaction valued at Cdn $80 million.

Founded in 1911 in Nanaimo, British Columbia, Madill has grown over the past decade as the result of strategic acquisitions and organic growth. The company manufactures technologically superior mechanical harvesting and other logging equipment at its facilities in British Columbia and Washington State and has sales and distribution offices in the northwest U.S., British Columbia and Alberta. Its products are designed exclusively for the needs of the forestry industry and are purpose-built to withstand both extreme terrain and weather conditions. The Madill name is a highly regarded brand in the logging industry.

"Madill is a recognized leader with tremendous brand equity whose products are engineered specifically for forestry applications," said Eric Bommer, a partner at Sentinel. "We are partnering with an outstanding management team at Madill and see opportunities to continue to grow the business through geographic and product line expansion and opportunistic strategic acquisitions."

Ron Dunbar, President of Madill, said, "We have built our reputation by providing heavy-duty, high-quality equipment that is purpose built for the performance requirements and conditions of the logging industry. The forest products market is expected to continue to exhibit steady increases in production due to strong and consistent underlying demand for wood and paper-based products worldwide. Our seasoned management team looks forward to working with Sentinel, whose proven track record of building value for its investors and management partners is well known."

John McCormack, Sentinel's co-founder and Senior Partner, said, "Madill has a long history of growth and profitability, and a high return on invested capital. Madill's excellent senior management team led by Ron will give us a distinct advantage as we implement strategic initiatives to grow the business in Canada and the U.S."

Sentinel recently completed raising $319 million of capital for Sentinel Capital Partners III, L.P. In addition to a number of acquisitions and realizations over the past 16 months, Sentinel last month acquired MetroDentalcare, a leading regional dental clinic operator and provider of group dental care in the greater Minneapolis/St. Paul metropolitan area. Also in May, Sentinel sold Falcon Holdings, one of the largest franchisees in the worldwide chain of Church's Chicken restaurants. The sale returned approximately 3.1x on Sentinel's five-year investment.