Sentinel acquires Mid-West Wholesale Hardware in management buyout

Mid-West Wholesale Hardware Co. Plays Critical Supply Chain Function and has Broadest Product Offering in the Industry

NEW YORK, February 5, 2007 - Sentinel Capital Partners, a private equity firm that invests in promising, smaller middle market companies, has acquired Mid-West Wholesale Hardware Co., a leading, full-service wholesaler of architecturally specified commercial door hardware, including manual and electronic locks, exit devices, door closers and related specialty items. The transaction closed on February 1, 2007. Financial terms of the sale were not disclosed.

"The commercial construction industry is seeing a compression of building schedules and increasing demand for reduced delivery lead-times," said Jim Coady, partner at Sentinel. "With considerable barriers to entry for new wholesalers, Mid-West's outstanding management team and strong employee base are capitalizing on this trend by delivering products to its customers when they need them."

Based in Kansas City Missouri, Mid-West serves over 4,300 active customers, primarily commercial hardware distributors, throughout the U.S. Through these strategically located facilities, the company can reach 84% of the U.S. population in two business days or less.

"We are excited to be working with a partner like Sentinel that understands our business well," said Terry Moser, Mid-West's Chief Executive Officer. "With their strategic and financial support, we look forward to growing our business by adding new product lines, building out our sales and customer development functions, increasing our geographic footprint and network density, pursuing e-commerce initiatives and selectively doing add-on acquisitions."

Widely recognized as a pioneer in the wholesaling and distribution segment, Mid-West carries the broadest line of commercial door hardware in the industry, including products from more than 40 of the world's leading manufacturers, such as Schlage, Yale, Corbin Russwin and Von Duprin. Mid-West is the only contract hardware wholesaler in the U.S. that represents both of the world's leading door hardware manufacturers, ASSA ABLOY and Ingersoll-Rand.

"What we look for in all our investments is a talented management team in a well positioned business where we can leverage their considerable experience to help execute a growth strategy," said David Lobel, managing partner at Sentinel. "That is exactly what we have found at Mid-West, a market leader with strong financial performance and a great management team. We are very excited about Mid-West's prospects."

Sentinel's experience in the wholesaling sector includes an investment in Nivel Holdings LLC, a leading wholesaler of aftermarket golf car replacement parts and accessories and Floral Plant Growers, a wholesaler of specialty floriculture products to lawn and garden centers of mass merchant retailers.