Industrial Piping, Inc. Completes Recapitalization Within A Year After Closing Deal

December 15 , 2008 – IRVINE, CA –Industrial Piping, Inc. (IPI), a portfolio company of the middle market private equity firm Blackford Capital, completed a recapitalization. IPI, www.goipi.com, provides mechanical construction, fabrication, and fire protection services to industrial manufacturing facilities in the Southeast.

Blackford Capital acquired IPI in June 2008. The acquisition was financed with equity from Blackford Capital, mezzanine debt from SPP Mezzanine Partners, and senior debt from RBC Bank. As a result of strong operating performance, Blackford Capital was able to recapitalize the business within a year of the acquisition.

“Because of the recapitalization, equity value has increased and has improved IPI’s ability to grow in today’s environment,” said Tony Kiehn, Chairman of IPI. “We’ve been very fortunate to partner with two great lenders, both of which have been flexible and cooperative during this entire process.”

“I’m very appreciative of all the goodwill demonstrated in helping IPI improve its capital structure,” said Mike Jones, CEO of IPI. “The effort put forth by all parties has placed IPI in a great situation and we look forward to taking this company to the next level.  With our new capital structure, we are poised for growth well into the future.”

“A company that is performing well in today’s environment is rare to find,” said Lisa Lane, Vice President at RBC Bank. “IPI has demonstrated that it has strong potential, and RBC is thankful to have played a vital role in IPI’s acquisition and following growth.” 

“IPI has been a great portfolio company for SPP.  We are very impressed with the management team at IPI as well as Blackford Capital’s oversight of the company,” said Javier Aguirre, Vice President at SPP Mezzanine.

About Blackford Capital
Founded in 2000, Blackford Capital is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm's operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. Blackford Capital has become a successful firm in the middle market having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. The firm currently has 6 portfolio companies. Blackford Capital maintains offices in Irvine and San Francisco, California.  For more information, please visit www.blackfordcapital.com.
 
About Industrial Piping, Inc.
Industrial Piping, Inc. (“IPI”) is one of the leading mechanical construction, fabrication, and fire protection companies in the Southeast.  IPI was founded in December 1945. Headquartered in Pineville, North Carolina, the company is divided into three operating divisions: Process Mechanical Construction, Automatic Fire Protection Systems and Custom Fabrication of Vessels and Skid Mounted Process Equipment.  IPI serves industrial and commercial enterprises in the chemical, oil and gas, food / agricultural, poly silicon, and other industries.  For more information, please visit www.goipi.com.

About SPP Mezzanine Partners
SPP Mezzanine Partners (“SPP Mezzanine”) is a privately-held investment management firm founded in 2003 to provide growth capital, including equity and subordinated debt, to finance leveraged and management buyouts, growth capital financings (internal growth and acquisitions), and recapitalizations. SPP Mezzanine seeks to invest in established small and middle market companies with proven business models and stable cash flows. SPP Mezzanine targets companies with strong, committed management teams and the potential for significant growth in equity valuation.

About RBC Bank
RBC Bank, headquartered in Raleigh, N.C., offers a wide range of financial services and advice to individuals, businesses and public institutions throughout the Southeast. RBC Bank’s network includes 440 full-service banking centers, an extensive ATM network and telephone and online banking. RBC Bank is the 40th largest U.S. bank by consolidated assets, according to the Federal Reserve Statistical Release June 30, 2008. RBC Bank is a wholly-owned subsidiary of Royal Bank of Canada (RBC) (RY on the TSX and NYSE), Canada's largest and most stable bank as measured by assets and market capitalization. Global Finance Magazine named RBC the best bank in Canada in October 2008, and the safest bank in Canada for 10 consecutive years, from 1999-2008. RBC is also one of the world’s financial, social and environmental corporate leaders for the past eight years as on the Dow Jones Sustainability World Index. Additional information about RBC Bank may be found at www.rbcbankusa.com.