Palladium Acquires Controlling Interest in Haden International

    NEW YORK--Aug. 16, 2001--Palladium Equity Partners, LLC, a leading private equity firm, announced today that it has made a controlling investment of $40 million in Haden International Group, Inc., a privately-held company that is one of the world leaders in providing paint finishing systems.
    In addition, it was also announced that Haden has entered into a new $25 million senior credit facility with Comerica Bank.
    With 2000 sales of approximately $300 million, Haden, based in Auburn Hills, Michigan, is one of the world's largest suppliers of paint finishing systems and equipment to leading original equipment manufacturers such as DaimlerChrysler, Toyota, General Motors, Ford, BMW and Boeing. The Company is a pioneer in the development of powder-based paint systems and has installed 10 automotive powder systems worldwide, making Haden the industry leader in this environmentally friendly technology. Haden will use the proceeds from the Palladium investment to strengthen its balance sheet and provide adequate working capital, enhancing its ability to meet the needs of its growing customer base.
    Earlier this year, Haden was awarded a major project by DaimlerChrysler to build a paint facility in their Toluca, Mexico plant, which manufactures DaimlerChrysler's popular PT Cruisers. This expansion will increase DaimlerChrysler's annual production capacity of PT Cruisers by 80,000 vehicles. In addition, Haden was also recently awarded a major contract by Toyota to expand its Sienna van facility in Princeton, Indiana, part of the automaker's broader expansion program for the Americas. Launch of the additional production capacity in Princeton is expected to go online in mid-2002.
    "For over 50 years, Haden has been recognized as a provider of the highest quality paint finishing systems, and is known the world over for its innovative engineering and technological leadership," said Marcos Rodriguez, Managing Member of Palladium Equity Partners. "This is a terrific opportunity for Palladium to invest in one of the industry's leading paint finishing equipment suppliers. Our investment will provide the company with the financial resources it needs to build upon its industry expertise, strong management team and proven track record, allowing the Company to launch into a new phase of growth."
    Ken Dargatz, President and Chief Executive Officer of Haden International Group, said, "Palladium's investment in Haden is a strong vote of confidence in recognition of Haden's technological leadership. Haden is a powerful presence in both the U.S. and European markets, as well as throughout the rest of the world, having completed projects in over 60 countries. Palladium's financial support and industry expertise will enhance our ability to serve our customers' growth and quality plans."
    Dennis K. Pawley, former Executive Vice President for Worldwide Manufacturing and Corporate Labor Relations for DaimlerChrysler, was instrumental in the origination of Palladium's investment in Haden. Mr. Pawley, through Pawley Enterprises, L.L.C., is a co-investor alongside Palladium in the transaction. He will also serve as a member of the Board of Directors of Haden and will continue in his role on the Company's Advisory Council.
    Until 1999, Haden had been a subsidiary of Haden MacLellan Holdings plc, a 185-year-old designer and manufacturer of steel fabrications and industrial air supply systems based in the United Kingdom. From its founding in 1816, Haden distinguished itself with numerous industry firsts, among them the installation of an early heating system in the Royal Apartments at Windsor Castle in 1826 and the construction and installation of Britain's first air conditioning system at the Law Courts in London in 1872. In 1962, Haden introduced an air handling system at an office complex in Bristol, England that would become the modern archetype for office air conditioning. In 1999, Haden MacLellan Holdings sold Haden to its management as part of a plan to divest non-core businesses and focus on its core fastener business. Haden management will retain a significant equity position in the business after Palladium's investment.