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July 31, 2006
CHS Completes Majority Equity Investment in Kranson Holdings, Inc.

Code Hennessy & Simmons LLC (“CHS”) announced today that it has made an investment from CHS Private Equity V LP, in partnership with senior management, in Kranson Holdings, Inc. (“Kranson”). The company is the leading full-service distributor of outsourced rigid packaging solutions in North America. Founded in 1902 and headquartered in St. Louis, Missouri, Kranson operates under the trade names TricorBraunTM and Caliber Wine Group. Kranson provides a broad assortment of more than 32,000 rigid packaging containers and related components as well as comprehensive package design, engineering and development services, global sourcing and logistics management. Kranson leverages the capabilities of a global network of over 600 suppliers to meet the unique packaging requirements of a diversified base of 6,500 customers in a variety of end-markets including personal care, healthcare, food, wine and household and industrial chemicals.

The investment represents the second time CHS has partnered with Ken Kranzberg (Chairman), Keith Strope (CEO and President), and various senior managers. Code Hennessy & Simmons IV LP, a $1.0 billion investment fund formed in 1999, acquired Kranson in October 1999. During CHS’ ownership, Kranson generated outstanding financial performance while further consolidating the rigid packaging distribution industry.

Keith Strope, President and CEO of Kranson, said, “In our previous relationship with CHS, we shared the same goals: create equity value through the execution of our superior business model and through accretive acquisitions. We exceeded expectations, and appreciated the professional, straight forward relationship we had with the CHS team. We look forward to our second partnership.”

Dave Hawkins, Partner at CHS, said, “Kranson is an exciting investment opportunity for CHS as it fits squarely into our distribution and packaging investment initiatives. No other rigid packaging distributor can match the depth of Kranson’s global sourcing capabilities, the breadth of its diverse customer base, and the effectiveness of its comprehensive design, engineering and logistics services. We are excited to have the opportunity to partner with such a high caliber management team and we look forward to continuing to build on Kranson’s industry leading position.”

The investment in Kranson complements CHS’ portfolio of investments in the distribution and packaging industry, which currently include: Beacon Roofing Supply, Inc. (Nasdaq: BECN), a distributor of residential and commercial roofing products; The Hillman Group, a distributor of fasteners, key blanks, signage and other small hardware components; Hoboken Wood Flooring Corporation, a distributor of hard surface flooring; Home Acres Building Supply Co., a distributor of gypsum wallboard in the Upper Midwest; Houston Wire and Cable Company (Nasdaq: HWCC), a distributor of specialty wire and cable; SunSource, a distributor of fluid power products and systems; and TruckPro, Inc., a distributor of aftermarket parts and accessories for heavy-duty vehicles.

CHS is a Chicago-based private equity firm specializing in private equity investments and recapitalizations of middle market companies in partnership with management. CHS has formed five private equity funds and currently manages over $2.5 billion of capital. Funds for CHS’ investment in Kranson come from CHS Private Equity V LP, a $1.3 billion investment fund formed in 2005.

For more information on Kranson, please refer to the company’s website at