Sentinel acquires Alemite Corporation for $39.3 million

NEW YORK, June 14, 2002 - Sentinel Capital Partners is pleased to announce the acquisition of Alemite Corporation. Alemite is the leading designer, manufacturer, and marketer of industrial lubrication equipment and components in North America.

Sentinel has acquired Alemite, a former subsidiary of Invensys plc, in a management buyout transaction valued at $39.3 million. Alemite was founded in 1919 and is headquartered in Charlotte, North Carolina. Invensys plc, headquartered in London, England, is an international production technology and energy management group that specializes in helping companies to improve efficiency, performance and profitability. Sentinel originated, sponsored and negotiated the transaction, arranged the acquisition debt and provided equity financing from Sentinel Capital Partners II, L.P.

"This deal is consistent with Sentinel's plan to selectively invest in quality niche manufacturing businesses," said David Lobel, Sentinel's Founder and Managing Partner. "Alemite is the most highly respected and recognizable brand in the lubrication industry. Alemite's product line includes grease guns, grease fittings, pumps and reels, and automatic lubrication devices. Alemite invented the hydraulic grease fitting in the 1920s and has been a leader in the industrial lubrication market for the past 80 years."

"We are delighted to partner in this deal with Alemite's senior management. We look forward to working closely with them and assisting in the company's growth plan and continued strong performance," Lobel added. AmSouth Bank, a division of AmSouth Bancorporation (NYSE: ASO), provided senior debt financing for the transaction. American Capital Strategies, Ltd. (NASDAQ: ACAS) provided subordinated debt financing.

"Alemite is well positioned to expand internationally and to make complementary acquisitions in the U.S. that can take advantage of the company's strong domestic distribution channels," said John McCormack, Sentinel's Senior Partner and co-founder. "Our objective is to substantially increase Alemite's size over the next five years, and the company has the systems and infrastructure in place to accomplish this goal."