Building on a Solid Foundation
Dan Sebastian and his management team at MW Industries, Inc. ("MWI") had been building a business with a solid market position, superior products and an attractive combination of manufacturing and catalog distribution sales when we met them. MWI had grown over the years both organically by introducing new products as well as through acquisitions as one of the most active acquirers in the fragmented spring manufacturing industry. The Company had become one of the largest spring manufacturers in the U.S. with strong profit margins. In June 2003, Quad-C acquired MWI in partnership with management and created a stock ownership program for key management based on earnings growth and value creation. We supported management's strategy to continue building the business by focusing on profitable organic growth as well as industry consolidation.

Product Line Extension Through Acquisition
During our ownership, MWI was able to expand its product offering and customer base by completing two strategic acquisitions, Engineered Spring Products and The Chestnut Group. ESP allowed MWI to penetrate the rapidly growing energy services market while Chestnut further completed MWI's product offering so the Company could offer virtually every category of spring to its customer base. Both acquisitions were financed with cost-effective, tax-deductible debt capital as a result of the Company's strong performance and Quad-C's relationships with the lending community. These acquisitions furthered MWI's reputation as a leading industry consolidator and complemented the strong organic growth of the Company during this period.

Successful Sale
As a result of executing on its plan, MWI was able to double its revenues and profits in the three years following the acquisition by Quad-C. In October 2006, we sold the Company to a private equity group, generating a return for our investors and for our management partners.