Compact Power Completes $21 Million Institutional Financing

Compact Power (CPI) and its subsidiary companies completed a $21-million equity and subordinated debt financing, focused on maintaining the rapid growth of the company. The financing was obtained from Latigo Partners, a New York based investment fund, and Peachtree Equity Partners, an Atlanta based private equity firm. St. Cloud Capital in Los Angeles and an investment fund managed by Sanders Morris Harris in Houston also remain as continuing institutional investors, along with significant management ownership.  
 
CPI, a privately held company based in Fort Mill S.C., is one of the four largest manufacturers of compact utility loaders and attachments, focused on the productivity of field labor in a variety of industries, including landscaping services, irrigation, agriculture, light construction and specialty utility services. CPI designs, manufactures, sells and services a range of compact utility loaders and attachments, for both the U.S. market and an increasing number of international markets, including Australia and the U.K. 

CPI's Compact Power Services subsidiary provides a national equipment service team, with more than 200 field and service personnel. The Mertz Manufacturing subsidiary in Ponca City Okla., with a 75-year history, also manufactures specialty equipment and components, both for CPI and for leading oilfield service companies. Total CPI net revenues are now in excess of $100 million.
 
"We are very pleased to add Latigo and Peachtree to our team of institutional investors, particularly as we see an increasing range of growth opportunities," said Roger Braswell, CEO of CPI. "We are expanding both our range of products and our distribution channels, and we are encouraged by the demand for our products overseas.  We plan to maintain aggressive growth, both internally and through select acquisitions, with a fundamental focus on anticipating and meeting our customers' requirements."
 
A portion of the new capital was used to redeem the ownership of Dogwood Equity, a private equity fund which had invested in CPI in 2003.

"We would like to thank Dogwood Equity for its strong support over the past four years.  They invested in our company at a much earlier stage, and this has proven to be a win/win relationship," Braswell said.

With the completion of the financing, CPI welcomes two new members to the Board of Directors, Fred Zeidman and Matt Sullivan. Fred Zeidman, former chairman of the Board of Seitel, Inc, serves as Director of Turnaround Partners, Inc. and was appointed Chairman of the United States Holocaust Memorial Council by President George W. Bush in March 2002. Matt Sullivan, formerly with Kidder, Peabody & Co. and Wachovia is a Founder and Partner of Peachtree Equity Partners.

For additional information, please see: www.cpiequipment.com or feel free to contact: Roger Braswell at 803/548-4348 or 800/476-9673.