News

SCP Acquires DeBusk Industrial Group

Located outside Houston, TX, DISC provides a variety of industrial cleaning services for critical equipment within the petrochemical industry. Services provided include hydro-blasting, vacuuming, hydro-cutting, chemical cleaning, and roll-off truck services. DISC presently serves customers in parts of the southwestern and southeastern United States through its nine existing branches located in Texas, Louisiana, and Tennessee.

Jim Wigginton and Mark McCammon will continue to represent Strength Capital on the board of Inland. Strength Capital is excited to be expanding its industrial service group by diversifying into the petrochemical industry. This deal represents the eighth investment for SCP Fund II, and the second add-on acquisition to the Inland platform. Strength Capital Partners is a private equity firm based in Birmingham, MI.

Furniture Factory Warehouse to be Acquired by Transition Capital Partners

The company is a unique furniture company that embraces the lower-middle market consumer and in particular, Hispanic consumers, through product selection, advertising, and store location. The Company operates 12 stores strategically located in middle-income and lower-income areas of San Antonio, the Rio Grande Valley, and the El Paso/New Mexico border region. These markets have been identified as high growth markets by Furniture Today.

Statesman Business Advisors, LLC is providing sell-side advisory services in connection with the sale of this company to Transition Capital Partners, a Private Equity firm located in Dallas Texas.

Mexican Restaurants Acquires Mission Burritos

“Mission Burritos is an exciting and successful concept that has earned an almost cult-like following with Houston area residents and visitors alike,” said Curt Glowacki, President and Chief Executive Officer of Mexican Restaurants, Inc. “It gives us an entry into the growing fast-casual dining segment, adding great value to our company and shareholders.”

Glowacki added that Mission Burritos would be able to leverage Mexican Restaurants´ marketing, operations and purchasing power to strengthen its brand, reduce costs and increase margins, which is critical in today´s economy and competitive marketplace. In addition, employees of Mission Burritos will also have access to new opportunities for development, advancement and employee benefits as part of a larger organization. The founder of Mission Burritos, Wendy Mitchell, chose to sell to MRI because she felt that the corporate cultures were a good fit with continued consistency of product and service levels.

The trendy eatery opened its first Mission Burritos location on West Alabama in Houston in 1995, and it quickly became known for its huge burritos made with fresh ingredients, variety of toppings, great salads and soups, burritos in a bowl, and friendly service.

Today, Mission Burritos is open for lunch and dinner and enjoys a robust catering business. Over the years, Mission Burritos has continued to attract college-aged types, a hip slice of older generations and families because of the value, flavors, menu options, and atmosphere.

About Mexican Restaurants, Inc.

Mexican Restaurants, Inc. (NASDAQ:CASA – News), based in Houston, Texas, operates 80 Mexican restaurants (61 Company-operated, 18 franchises and one licensed). The current system includes six brands: Casa Ole, Monterey´s Tex Mex Cafe, Monterey´s Little Mexico, Tortuga Mexican Kitchen, La Senorita and Crazy Jose´s. The Company enjoyed annual sales exceeding $81 million in 2005 and employs more than 3,000 employees across four states. For more information, please visit www.mexicanrestaurantsinc.com.

Source: Mexican Restaurants, Inc.

Statesman initiated this transaction and served as an advisor to Mission Burritos.

Community Bank System Expands Benefits Administration Business

BPAS provides daily valuation, actuarial and employee benefit consulting services on a national scale, with offices in Upstate New York and Pittsburgh. With the addition of HBT and its operating subsidiaries, BPAS will enhance its service offerings in flexible spending account and collective investment fund administration services.

“This transaction represents a very attractive opportunity for us,” said Community Bank System President and Chief Executive Officer, Mark E. Tryniski. “Our benefits administration business has been, for many years, the most profitable and fastest-growing of all our financial services businesses. It has posted double-digit revenue increases for nine consecutive years, and currently accounts for more than 60% of our total financial services revenue. One of its most attractive attributes is that it´s not limited to the general footprint of our New York and Pennsylvania banking franchises, and presently serves clients in 32 states and Puerto Rico. The addition of HBT will clearly enhance our geographic diversity and service capabilities, further allowing BPAS to continue its impressive record of growth and profitability.”

The acquisition will give BPAS revenues of more than $20 million, and administration of over 140,000 defined contribution and flexible spending participant accounts with nearly $3.0 billion in assets under custody. It will also be additive to the Harbridge Consulting Group subsidiary of BPAS, which is the largest actuarial services practice in the state of New York, outside of metro-New York City. The transaction, which is subject to certain regulatory approvals, is expected to close during the second quarter.

Barry S. Kublin, President of BPAS added, “This acquisition will add valuable capacity to support our growing client base, and allow us to provide additional services to our clients and distributor partners. It will strengthen our organization, because HBT operates in a dynamic labor and business region, and is a highly respected employee benefit and trust company that has served its customers for 68 years.”

“I am excited about the expanded opportunities that the combined company will bring to the market place for both our clients and employees,” said David Hand, President of HBT. “BPAS is an ideal partner for us. I´m very familiar with their management team, and look forward to joining this group that has demonstrated product leadership, superior financial performance and exceptional customer service.”

Community Bank System, Inc. (NYSE: CBU) is a registered bank holding company based in DeWitt, N.Y., with approximately $4.5 billion in assets and more than 130 customer facilities. Its wholly-owned banking subsidiary operates as Community Bank, N.A. across Upstate New York, and as First Liberty Bank & Trust throughout Northeastern Pennsylvania. Its other subsidiaries include: BPA-Harbridge, which provides daily valuation, actuarial and employee benefit consulting services from offices in Upstate New York and Pittsburgh; Community Investment Services, Inc., a broker-dealer delivering financial products throughout the company´s branch network; and Nottingham Advisors, a wealth management and advisory firm with offices in Buffalo, N.Y., and North Palm Beach, Fla. For more information, please visit our websites at: www.communitybankna.com or www.firstlibertybank.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The following factors, among others, could cause the actual results of CBU´s operations to differ materially from CBU´s expectations: the successful integration of operations of its acquisitions; competition; changes in economic conditions, interest rates and financial markets; and changes in legislation or regulatory requirements. CBU does not assume any duty to update forward-looking statements.

SOURCE: Community Bank System, Inc.

Telco Solutions III, LLC Announces Acquisition of Micropaq Corporation

Micropaq manufactures products for multiple companies in a variety of industries including energy, power, medical, industrial automation, defense, networking, and telecom.

“We are excited about the additional marketing opportunities and synergies that will allow us to serve several cross sections of our industry,” said Kamal Bajaj General Manager of Micropaq Corporation.

“With the addition of Micropaq´s manufacturing capabilities, this acquisition will expand our markets and increase our company´s overall capability in the EMS arena;” stated Timothy J. Knox, President and CEO of TSIII, LLC, who also continued “the Micropaq team, clearly recognized as a leader in quality manufacturing serving their respective markets, will continue to serve their customers from the Houston facility.”

Telco Solutions III is a value-add EMS provider and factory authorized distributor of Nortel telecommunications products. Established in 1984 as a manufacturer of cable assemblies for leading telecommunications manufacturers, TSIII has grown into a multi-operational, multi-million dollar organization with over 300 employees. TSIII is also a diversified manufacturer specializing in printed circuit boards, wire and cable assemblies, and mechanical assembly build. The Franklin (Nashville), Tennessee based company is a premier value-added manufacturer with regional offices located in Tennessee, Texas, Arizona.

For more information, visit http://www.telco1.com.

Source: Telco Solutions III, LLC

Statesman served as exclusive financial advisor to Micropaq Corporation on this transaction.

BMHC Completes Acquisition of Home Lumber

SAN FRANCISCO, March 2 /PRNewswire-FirstCall/ — Building Materials Holding Corporation (Nasdaq: BMHC) today announced that its wholly owned subsidiary, BMC West Corporation, has completed the acquisition of the business assets of the Home Lumber division of Leaman Building Materials, L.P. (“Home Lumber”). Home Lumber, which had sales of approximately $70 million in 2005, provides lumber, building materials and millwork to professional contractors and builders from its three locations in the Houston market. BMC West also operates a millwork facility in the Houston market that provides custom doors and millwork products to professional contractors and builders.

Robert E. Mellor, BMHC´s Chairman, President and Chief Executive Officer, stated, “The acquisition of Home Lumber substantially increases the size of our operations in the greater Houston market and positions us to further penetrate one of the top five homebuilding markets in the U.S. This transaction is the latest step in continuing our strategy of expanding our range of products and services to meet our customers´ needs. Home Lumber shares a corporate culture similar to ours and we believe they will be a valuable addition to BMC West.”

About BMHC

BMHC, a Fortune 1000 company, is one of the largest providers of residential construction services and building materials in the United States. BMHC serves the homebuilding industry through two subsidiaries: BMC Construction provides construction services to high-volume production homebuilders in key growth markets across the country; BMC West distributes building materials and manufactures building components for professional builders and contractors in the western and southern states. BMHC was recently named to the Forbes Platinum 400, also known as America´s Best Big Companies, and was selected Pro Dealer of the Year by Home Channel News. To learn more about BMHC, visit www.bmhc.com.

SOURCE Building Materials Holding Corporation
03/02/2006

Statesman served as exclusive financial advisor to Leaman Building Materials, L.P. on this transaction.