H.I.G. Capital, LLC
Chief Executive Officer
Republic National Cabinet Corporation
Republic National Cabinet Corporation Acquires Groupe Cabico
MIAMI -April 23, 2001 - Republic National Cabinet Corporation, a portfolio company of H.I.G. Capital, announced today the acquisition of Groupe Cabico. Cabico, based in Ayers Cliff, Canada, is a leader in high-end, custom kitchen cabinetry manufactured in Canada and sold throughout the eastern and mid-western United States.
With the addition of Cabico, Texas-based Republic becomes the seventh largest cabinet manufacturer in North America. Cabico is the third such transaction for Republic since September of 1998, when H.I.G. Capital joined forces with Republic management to re-capitalize the company and expand Republic's business through a combination of internal initiatives and strategic acquisitions. In keeping with Republic's successful acquisition formula, Cabico's owners will become significant shareholders of Republic, and its executive team members will continue in their current roles.
Cabico marks a real capstone in H.I.G.'s and management's efforts to grow and diversify Republic, which in 1998 earned $55 Million of revenue, primarily in the value priced segment in the southeast and south central U.S. In 2000, Republic sold $170 Million of cabinets nationally across a variety of channels including directly to builders, through distributors and dealers, and in company-owned retail outlets. Republic's extensive product line, which now ranges from value priced cabinets to high-end custom cabinetry, includes the Republic, Cabico, Legacy, Sunshine, Eurocraft and Crown cabinet brands.
Cabico's cabinets are used predominately in home remodeling, which is the fastest-growing segment of the cabinet industry. Cabico sells its cabinets through an extensive network of cabinet dealers throughout the East Coast and mid-western United States. Cabico's cabinets are built to order, and can be purchased in thousands of varieties. All of Cabico's manufacturing and operations are completed at its facilities in Ayer's Cliff and Coaticook, Canada.
"Cabico is a great strategic fit for Republic," noted Charles Hanemann, Managing Director at H.I.G. "Cabico brings to the Republic team a custom cabinet line that is a leader in delivery time, price and quality in the high-end segment of the business. With Cabico, we've really rounded out the product portfolio, making Republic a truly national, highly-diversified cabinet company."