Codel Holding Company

May 2, 2005
Contact: Lauren B. Sinai

Prospect Partners And Montgomery, Shelton & Company Acquire Codel, Inc.

Leading Distributor of Home Entry Door Systems Seeks to Expand Presence in Pacific Northwest

CHICAGO, ILL.—May 2, 2005: Together with management, Prospect Partners, LLC and Montgomery, Shelton & Company of Winnetka, Illinois are excited to announce the formation of Codel Entry Systems, Corp. to acquire Codel, Inc. of Tacoma, Washington.

Codel is a leading Pacific Northwest fabricator, assembler, marketer and distributor of pre-hung steel and fiberglas entry door systems and related accessories for residential homes. Founded in 1997 by door business veteran Brent Moss, Codel quickly established a stronghold in the new-home construction markets in Washington and Oregon, selling its products through both independent and regional door shops and lumberyards that supply contractors and home builders.

"Since its inception, Codel has become well-known for its unique offering in both its quality products and its superior customer service," says Maneesh K. Chawla, a Principal at Prospect Partners. "Given Codel's reputation, product quality and growing customer base, we see a solid opportunity to expand its presence by opening new locations in its existing markets, entering new geographies over time and offering entry door systems through new channels."

Mr. Moss, who will continue in his current role as President and run the company from its Tacoma headquarters along with his existing management team, says he is excited about the opportunities the recapitalization creates.

"Codel has experienced tremendous growth in recent years," Mr. Moss says. "The partnership with Prospect Partners and Montgomery Shelton will help us to better pursue our goals for expansion while simultaneously maintaining our customer service commitment of three-day delivery throughout the Pacific Northwest. Both Prospect Partners and Montgomery Shelton have proven ability to grow branded products, and their team is compatible with the existing Codel culture and business philosophy."

Prospect Partners' investment partner, Montgomery, Shelton & Company, is a highly experienced, operationally-oriented buyer that has completed 10 acquisitions since its 1984 founding. Partners Mead Montgomery and David Shelton offer a broad base of investment knowledge plus key operating experience in companies in a variety of industries.

"We are very excited to partner with Brent Moss and the Codel team," Mr. Montgomery says. "They are tremendously experienced in their market niche and are an excellent operator with unparalleled commitment to quality and customer service."

In pursuing their growth objectives, Prospect Partners, Montgomery Shelton and Codel management will actively pursue add-ons of other manufacturers and distributors of pre-hung doors.

Mr. Chawla will serve the company's Board of Directors along with Mr. Montgomery, Mr. Shelton and Mr. Moss. Prospect Partners' Principal William V. Glastris, Jr. will serve the company as a Director and Chairman.

Codel Entry Systems, Corp. is the fifth platform company of Prospect Partners II, L.P., the $165 million private equity fund that closed in June, 2004. The Fund's other platform companies include Pipp Mobile Storage Systems, a Walker, Michigan-based manufacturer, designer and installer of movable shelving and storage systems; Chicago-based Kronos Products, Inc., a leading Greek foods manufacturer; Brazoria, Texas-based Industrial Hoist Services, LP, a leading national provider and lessor of hoists used in industrial applications; and Superior Tool Holding Company, a leading manufacturer and distributor of a complete range of professional and consumer pipe-working and specialty plumbing tools sold nationwide.

About Prospect Partners

Prospect Partners, LLC of Chicago, Illinois is a leading investor in unique lower-middle-market companies, managing two private equity funds totaling $270 million. Since its founding in 1998, Prospect Partners has focused on management-led leveraged acquisitions of small niche leaders with revenues typically between $10 and $30 million; the firm has invested in more than 45 leading companies within many niche consumer, commercial, specialty distribution and service markets throughout the United States.

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September 13, 2017
Prospect Partners Sells Codel Entry Systems