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Highlander Partners Announces Completion of Sale of The Composites Group

Dallas, TX — November 6, 2014 — Highlander Partners, L.P., a leading middle market private investment firm based in Dallas, Texas, announced that it has completed the sale of The Composites Group (“TCG”), to Citadel Plastics Holdings, Inc., a leading global provider of thermoplastic and engineered composite compounds.

The sale of TCG, a Highlander investment since June 2008, represents over six years of strong execution and strategic collaboration between Highlander Partners and TCG’s management team, led by CEO Terry Morgan. In 2007, Highlander backed Mr. Morgan, a seasoned executive with experience in many industries, to seek acquisitions of companies that could be scaled up with organic and acquisition growth. In June 2008, Highlander purchased a controlling stake in Hadlock Plastics of Geneva, Ohio, and Terry Morgan became Hadlock’s President. Mr. Morgan and Hadlock’s management team focused on the growing trend to replace traditional manufacturing materials, such as metal and wood, with superior-performing, corrosion-resistant, high strength-to-weight ratio thermoset composites.

To further develop this opportunity, Highlander acquired Premix, Inc. of North Kingsville, Ohio, and its wholly-owned subsidiary, Quantum Composites, Inc. of Bay City, Michigan in December 2010. It combined these operations with Hadlock Plastics to create a vertically-integrated compounder and molder of thermoset composite materials that offers customers a full range of engineering and manufacturing processes, from prototype through production. The combined company was branded The Composites Group, and Terry Morgan successfully managed the integration of the two companies and executed the growth strategy of the company as Chief Executive Officer. Currently, TCG is a leading manufacturer and molder of engineered composite compounds with a strong R&D focus, excellent manufacturing capabilities, superb customer service and a robust pipeline of growth opportunities. The combination with Citadel will further enhance TCG’s position in the market and will provide benefits to both companies.

Terry Morgan commented, “We have enjoyed the collaborative relationship with Highlander, and its support was critical for the organization. It is exciting to see the progress that the company has achieved over the last six years, and I have a strong conviction that, spurred by the industry trends, TCG will continue its momentum in the foreseeable future. We have created a vibrant company with exciting composite technologies, and combining forces with Citadel will provide both companies with new growth prospects and opportunities.”

Michael R. Nicolais, President of Highlander Partners and a former Board Member of TCG, added, “We are very pleased that we were able to partner with Terry Morgan on this investment and continue with Highlander’s practice of partnering with seasoned executives to acquire platform companies and use a ‘buy and build’ strategy to establish successful businesses in various industry sectors. TCG’s results have been spectacular, and we are very thankful to Terry Morgan and TCG’s management team. Highlander will continue using this strategy and is always looking for ideas and quality executives to carry out organic and M&A strategies in various sectors.”

William Blair & Company, L.L.C. is financial advisor to TCG in this transaction and was financial advisor to Premix in the December 2010 sale to TCG. Andrews Kurth LLP is serving as TCG’s legal counsel.

About Highlander Partners, L.P.

Highlander Partners, L.P. is a Dallas-based private investment firm with approximately $1 billion of assets under management. The firm focuses on making investments in businesses in targeted industries in which the principals of the firm have significant operating and investing experience, including basic manufacturing, food, building materials and others. Highlander Partners uses a “buy and build” investment approach, creating value by helping companies grow organically and through acquisitions. For more information, visit www.highlander-partners.com.

About The Composites Group

The Composites Group offers a comprehensive portfolio of engineered composite compounds, including high-performance fiberglass and carbon fiber compounds, and parts supported by industry leading research and development capabilities. TCG sells its compounds and complete product solutions to a diverse set of customers across end markets which include aerospace, automotive, defense, electrical, energy, heavy machinery and recreation. TCG is headquartered in Highland Heights, Ohio, with manufacturing facilities located in northeastern Ohio and Bay City, Michigan. For more information, visit thecompositesgroup.com.