Sentinel acquires Vintage Parts in management buyout transaction


Experience with Wholesalers Helps Sentinel Continue Strong Momentum Into Fourth Quarter


NEW YORK, October 18, 2007 - Sentinel Capital Partners, a private equity firm that invests in promising, smaller middle market companies, today announced the acquisition of Vintage Parts, the leading independent supplier of original slow-moving and inactive OEM replacement parts from James Finlay, Ltd., a subsidiary of the Swire Group. Management and Sentinel are partners in the transaction, the terms of which were not disclosed.

Pursuant to long-term agreements with 37 OEMs, including General Motors, Ford, CNH Global, John Deere, Harley-Davidson, Komatsu, and Honda, Vintage Parts purchases slow moving inventories for older models and warehouses them for future sale. Vintage Parts serves more than 75,000 individual customers, many of whom are authorized OEM dealers. Supplying over one million discrete part numbers, Vintage Parts is the nation's largest independent supplier of original OEM parts and accessories.

"Vintage Part's management team is very capable and experienced. They possess a unique understanding of the slow moving replacement parts market, and have the ability and technology tools in place to accurately forecast demand for older models and thereby efficiently manage inventories," said Scott Perry, a Senior Associate at Sentinel. "We have significant prior experience with wholesale businesses, and Vintage has impressed us a great deal with its ability to add value to both ends of the supply chain and build solid long-term relationships with OEMs and a diverse group of customers of the OEMs."

"We are extremely proud to have achieved double-digit sales growth in each of the last four years. Looking forward, there are still significant opportunities to grow by increasing the quantity and quality of parts purchased from our current OEM relationships and also by purchasing inventory from new OEM customers, both in our targeted industries and in selected new industries," said Darrell Armbruster, Chief Executive Officer of Vintage Parts. "With Sentinel's knowledge of our industry and distribution businesses, we now have the strategic and financial resources to truly accelerate our growth plan."

"This deal is right in our strike-zone and builds on our significant momentum in 2007. This year, we acquired four businesses, recapitalized two and sold two, all for very attractive returns," said Jim Coady, a partner at Sentinel. "We actively pursue investments in strong companies with leading positions in targeted niche sectors where we have had prior success. We also look for outstanding management teams who we can work with to improve and grow businesses. Vintage Parts possesses all of these elements."

Recent Sentinel investments in the wholesaling sector include Nivel Holdings LLC, a supplier of golf car replacement parts and accessories, and Midwest Wholesale Hardware, a wholesaler of architecturally specified commercial door hardware.