Hilden completes recapitalization with Creek Partners

April 21, 2008 - United States Of America

Hilden America Inc announced that it has completed a recapitalization financed and backed by Washington, DC-based private equity firm Pine Creek Partners in partnership with SunTrust Bank.

Headquartered in South Boston (VA), Hilden is a luxury linen provider to high-end hotels and restaurants and specializes in long staple, Egyptian cotton bed, table and bath linen, as well as terry towels, robes and slippers. Customers include the Sun Valley Company, The Greenbrier, The Breakers, The Homestead, the Inn at Little Washington and the Pebble Beach Company. This transaction will allow Hilden to strengthen working capital resources and solidly position the Company for future growth.

Hilden, a well known name in textiles, was founded in 1874 and was previously a privately-owned family business. As a subsidiary of British textile manufacturer Hilden Manufacturing, Hilden America was established as a direct presence in the United States in 1989 through the acquisition of Halifax Cotton Mills. In 2006, investors including the Company’s current CEO Russell Basch, purchased this US division.

Pine Creek is very pleased to have partnered with proven executive and CEO Russell Basch who has overseen solid revenue growth and margin expansion during his tenure at Hilden. Mr. Basch will own a significant amount of the business going forward.

“This infusion of capital and talent will provide tremendous opportunities for Hilden,” said Basch. “We will be able to even better offer our customers the right products on time with a continued focus on excellent quality, delivery and prices. Moreover, this transaction will enable Hilden to continue to grow organically and via acquisitions.”

“This transaction fits squarely with Pine Creek’s objective of partnering with skilled management teams to realize opportunities to really grow businesses and create value,” said Hilden Chairman and Pine Creek Managing Partner George McCabe.

“Hilden enjoys a unique advantage with its US-based cut and sew operation and unequaled sourcing capabilities which affords the Company the ability to quickly deliver high-quality products at competitive prices. The growth prospects are truly exciting.”

“For over 130 years, Hilden has been providing high-quality linens to its customers,” Basch said. “Pine Creek’s financial support strongly positions the company to continue to constantly exceed its customer expectations and also realize its plans for significant growth.”

Hilden America Inc is a leading provider of luxury table, bed, and bath linens to the hospitality industry. Through its Virginia manufacturing facility and strong relationships worldwide, Hilden America proudly offers sophisticated products of unbeatable quality to a range of clients including 4 and 5 star hotels and fine dining establishments.