New York, NY, September 19, 2006 &ndash SPG Partners, LLC, a New York-based private equity firm founded in 2005, announced today that a special purpose entity of the firm has agreed to acquire majority ownership of privately owned Excel Mining Systems, Inc. based in Bowerston, OH.
Excel, founded in 1991 by Bruce Cassidy, President, CEO and majority owner of Excel and his partners, is the leading producer and manufacturer of roof bolts and related roof support control products to the United States underground coal mining industry. Excel has six manufacturing sites: Bowerston, Cadiz and Proctorville, OH; Grundy, VA; Marion, IL and Clearfield, UT. Roof bolts and related products are essential to the safe and productive underground mining of coal.
“This is our second investment since forming SPG Partners,” said Ian Snow, SPG’s Managing Partner. “We are optimistic about the future growth of coal mining in the U.S. and look forward to helping Excel flourish in the market.”
“We are pleased to announce our new partnership with SPG Partners, a firm with a unique understanding of our business and of the underground coal mining industry,” said Bruce Cassidy, President, CEO and majority owner of Excel. “This new association and investment by SPG will serve to enhance the growth of our business and best position Excel to serve its customers.”
SPG also announced today that Paul Chellgren, one of the firm’s Operating Partners, will become Non-Executive Chairman of the Board of Excel upon consummation of the acquisition. Mr. Chellgren has over 30 years of experience in the U.S. coal industry, most recently as Chairman and CEO of Ashland, Inc. He participated in the creation of Ashland Coal Inc. in the mid-1970s and served in various capacities until that company merged with Arch Minerals to form Arch Coal Inc. in 1997. Arch Coal Inc. is the second-largest producer of coal in the U.S. by tonnage.
“SPG Partners is very pleased to make this important majority investment in Excel. Bruce Cassidy and his team have built an outstanding company that provides essential roof support products and services to the U.S. underground coal mining industry,” Mr. Chellgren said. “We are thrilled that Bruce and his management team will remain in place to continue to lead Excel and serve this industry and their customers with superior products and services.”
“SPG’s new investment in Excel underscores the importance of our operating partner strategy. We have great confidence in Paul and Bruce to continue to build upon Excel’s success,” said Harry Crosby, an SPG partner.
The transaction is subject to customary closing conditions and is expected to close in the fourth calendar quarter of 2006. Terms and conditions of the transaction were not announced.
Credit Suisse advised SPG Partners on the transaction.
About SPG Partners, LLC
SPG is a New York-based private equity firm seeking to acquire businesses in attractive industries where it can leverage the expertise of its exclusive Operating Partners, who are seasoned industry executives.
Steven Bruce / Shawn Pattison / Ann Taylor Reed
The Abernathy MacGregor Group