114 Million Euros Offered for Casco Impregnated Pa

New York,NY, May 29--Harvest Partners, Inc., a leading New York-based multinational private equity firm specializing in acquiring profitable medium sized companies, and Deutsche Beteiligungs AG (DBAG), a Frankfurt-based private equity firm and strategic limited partner of Harvest Partners, have reached an agreement with Netherlands-based Akzo Nobel N.V. to purchase the Casco Impregnated Papers business of Akzo Nobel (CIP) for euro 114 million ($135 million). Harvest will acquire CIP through its Harvest Partners IV partnership jointly with DBAG Fund IV and management. The transaction will be completed upon receipt of regulatory approvals. CIP, based in Dusseldorf, Germany, is a major global supplier of surfacing materials for applications in the furniture, flooring, woodworking and automotive industries. The business recorded 2002 annual sales of euro 265 million ($315 million) and, with manufacturing facilities in the United States, Canada, Germany, Spain, Sweden, France, Brazil, and Malaysia, has an annual production capacity of more than 600 million square meters. CIP supplies surface materials to the furniture, laminate flooring and building supply industries in 45 countries worldwide. These products are produced by impregnating and coating decorative and technical base papers with resin formulations, adding to their strength and resistance. The resulting films adhere to a variety of substrates to provide a wear-resistant, aesthetically appealing surface layer at an attractive price relative to alternative materials. "We are pleased to announce the acquisition of Casco Impregnated Papers, a transaction which underscores our commitment to investing in growing, well-positioned businesses and leverages our expertise in executing multinational transactions," said Tom Arenz, Senior Managing Director of Harvest Partners. "DBAG, our partner of 18 years, brings to bear substantial financial and strategic know-how in the European market that greatly enhances our own trans-Atlantic capabilities. This partnership is well suited to CIP's global long-term growth strategy, which calls for continued expansion in both the European market and the fast-growing North American market. We are committed to working with CIP's management to continue to execute a strategic plan that capitalizes on its leading position across a wide breadth of product and geographic market segments." "We want to continue to play an active role in the many developments currently underway in the global surfacing material and woodworking industries," said John Ahlstrom, General Manager of Casco Impregnated Papers. "To do so, it is necessary to have an owner with a clear focus on growing our business and a clear understanding of what it will take to execute this vision. Through our association with Harvest Partners and Deutsche Beteiligungs, we will seek to build further upon our leading market positions, strong customer relationships and leading product development expertise."

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