In considering a potential acquisition, we make sure the company is well established in its market, with a history of generating cash flow. Solid, sustainable cash flow provides assurance that the business is sound and may enable it to fund much or all of its own future growth. Ames True Temper, Inc., the leader in lawn and garden tools and accessories, has been in business for more than 230 years and exemplifies the growth opportunities available to a well established, cash-generating business.

CHPIV acquired the company along with management in June 2004 for $380 million. At the time, ATT had already embarked on a new course designed to maintain strong growth under evolving market conditions by leveraging the company's strong portfolio of recognized brands to build sales and EBITDA (earnings before interest, taxes, depreciation and amortization). The strategy relies on a blend of out-sourced products and domestic and international manufacturing to make ATT a leader in its markets, primarily in North America, while allowing it to provide unequaled customer service.

Under Castle Harlan ownership, ATT has further expanded its global sourcing and rationalized its domestic manufacturing to improve profitability. It has also continued to develop higher-margin new products - 283 launched during the 2004 selling season, more than 400 in 2005 - with a goal of generating 25 percent of annual net sales from products introduced in the previous 24 months. A related strategy has been to grow its sales in the various product categories where it does not have leading market share, such as garden hoses, pots and planters and pruning tools, using its highly responsive distribution infrastructure and strong customer relationships. The company has also gained a competitive advantage by developing specific branding strategies for such large customers as Wal-Mart, Home Depot and Lowe's.