Code Hennessy & Simmons LLC ("CHS") announced today that it has made a majority equity investment in Hoboken Wood Flooring Corporation ("Hoboken"), the largest independent distributor of hard surface flooring in the United States. CHS' investment represents a partnership between CHS and Hoboken's Chief Executive Officer Ira Lefkowitz and President Joel Lefkowitz.

"My brother Ira and I are eager to work with CHS," said Joel Lefkowitz. "We chose CHS to be our partner because of the firm's successful track record with distribution companies. As we pursue new market opportunities and continuously improve our distribution network, CHS' extensive experience with similar companies will help Hoboken generate outstanding results."

Founded in 1923 in Hoboken, NJ, Hoboken currently has 26 locations and over 650 employees. Hoboken distributes a broad selection of domestic and exotic hardwoods, including cherry, walnut, mahogany, bamboo, maple, white oak and teak from leading domestic and international manufacturers. The company also sells ceramic tile, resilient vinyl and engineered laminate flooring products. Hoboken has approximately 6,500 active customers including large and small contractors, flooring retailers, national home centers and other distributors. Hoboken operates major distribution centers in Wayne, NJ, Stoughton, MA, Albany, NY, Orlando, FL and Atlanta, GA that support satellite distribution centers throughout the Eastern Seaboard and Texas.

"Hoboken represents an excellent investment opportunity for CHS," said Ed Lhee, Managing Director at CHS. "Positive industry dynamics are creating opportunities for Hoboken to capitalize on increased demand for hardwood flooring, to expand the company's geographic reach and to leverage global sourcing to offer the most competitive product line in the industry. We look forward to working with Ira and Joel Lefkowitz to realize Hoboken's tremendous potential. The company's outstanding record of growth and cash flow generation validates their leadership."

The investment in Hoboken complements CHS' portfolio of investments in the distribution industry, which currently include Beacon Roofing Supply, Inc., a leading distributor of residential and commercial roofing products; The Hillman Group, a leading distributor of fasteners, key blanks, signage and other small hardware components; and Houston Wire and Cable Company, a distributor of specialty wire and cable.

"CHS' investment in Hoboken is consistent with our strategy to invest in opportunities where CHS' expertise creates unique benefits for business owners, "said Peter Gotsch, partner at CHS. "Our familiarity with middle market distribution companies allowed CHS to meet the sellers' objectives while working constructively with management to set strategic and operating priorities."

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 Hoboken will come from Code Hennessy & Simmons IV LP, a $1.0 billion investment fund formed in 1999.