October 11, 2016

American Leather Acquires LEE Industries

Capital Partners® is pleased to announce that American Leather Holdings, LLC (“American Leather”), a portfolio company of Capital Partners Private Equity Income Fund II, LP (“CP II”), acquired LEE Industries (“LEE”) on September 28, 2016. American Leather was acquired by CP II along with American Leather’s senior management team, in July 2012. American Leather was CP II’s first platform investment.

“The complementary nature of our two fantastic cultures and diverse strengths is an exciting proposition – and establishes a robust base for future growth opportunities,” said American Leather and LEE Industries President & CEO Bruce Birnbach. “American Leather is known for its transitional to contemporary styling and heavy focus on speed, innovation, and engineering. LEE is known for its design and customization of well-curated traditional to transitional lifestyle products. With these areas of expertise, both companies will learn from one another, and together, our potential is unlimited.”

As with its other investments, Capital Partners® structured the initial American Leather transaction and the LEE transaction primarily with equity and only a moderate level of debt financing in order to provide a strong balance sheet from which to implement its growth plan.

For 47 years, LEE Industries (www.leeindustries.com) has created innovatively styled, high-quality home furnishings in Conover, North Carolina, while adhering to a set of values that focus on its associates, vendors, community, and environment. Thanks to the craftsmanship and team spirit that is the hallmark of LEE’s success, every masterpiece is – and will continue to be – made with pride in the USA.

Founded in 1990, American Leather (www.americanleather.com) makes premium custom-upholstered leather and fabric furniture at its Dallas, Texas, manufacturing facility. Recognized as the industry leader in innovation, American Leather delivers high-quality, made-to-order contemporary and transitional furniture in three weeks or less to its retailers – a delivery standard approximately three times faster than the industry average.

Please contact the Capital Partners Investment Team with additional platform investment or add-on opportunities.

About Capital Partners

Capital Partners (www.capitalpartners.com) is a private investment firm founded in 1982. Our principals have invested in more than 75 platform and add-on acquisitions across a variety of industries.Based on the combination of solid investment discipline and our low leverage approach, we have successfully partnered with management teams through multiple economic cycles.