CHICAGO — Code Hennessy & Simmons LLC ("CHS") announced today the merger of Hoboken Wood Flooring LLC (“Hoboken”) and Superior Products, Inc. (“Superior”). Through Hoboken, CHS has made a majority equity investment in Superior, a leading floor covering distributor in the Mid-Atlantic. Superior provides a wide variety of floor covering products to flooring retailers and contractors for residential and commercial applications across ten states. The merger represents a partnership between CHS, Hoboken and the senior management of Superior.

Founded in 1923 in Hoboken, NJ, Hoboken currently has 16 locations and over 650 employees. CHS made a majority equity investment in Hoboken in May, 2005. The merged company will be the largest independent floor covering distributor in the United States with sales in excess of $500 million, in-depth knowledge of hardwood, carpet, vinyl, laminate and ceramic, and long-standing relationships with leading floor covering retailers and contractors throughout the Eastern seaboard.

“My brother, Ira, and I warmly welcome the Superior management team and employees into the Hoboken organization,” said Joel Lefkowitz, President of Hoboken. “Ira and I have witnessed Ed Waldman, Len Waldman, Bob Nichols and others establish Superior as a premier flooring distribution franchise with unique product knowledge and long-standing customer relationships in Pennsylvania, Maryland, Ohio, Virginia and other Mid-Atlantic states. Combined, we will offer our customers the most competitive product line and efficient distribution network in the floor covering industry.”

"We are eager to combine with Hoboken," said Bob Nichols, President of Superior. “We look forward to working with floor covering pioneers Joel and Ira Lefkowitz and CHS, knowing the firm's successful track record with distribution companies and the in-depth understanding of the floor covering industry that the CHS organization has developed.”

“We are pleased with the results of our investment in Hoboken and view the combination with Superior as a unique opportunity to expand Hoboken’s geographic presence, provide ‘one-stop’ shopping to flooring retailers and contractors, expand Hoboken’s relationships with leading floor covering manufacturers and capitalize on dynamic trends in the floor covering industry,” said Peter Gotsch, Partner at CHS.

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