Investor Group Led by CAI Capital Partners Acquires GLM Tanks & Equipment Equity

On August 31, 2006, an investor group led by CAI Capital Partners & Co. III, L.P. completed the acquisition from Texas-based Tanglewood Companies L.P. of the equity of GLM Tanks & Equipment Ltd. for an undisclosed amount. The investor group included senior management of GLM.

GLM is a leading Canadian manufacturing and engineering design company headquartered in Edmonton, Alberta. Founded in 1977, it designs and fabricates steel tanks, vessels and process equipment for the oil and gas, mining, food processing, chemical and pulp and paper industries. The largest percentage of its revenue is derived from products sold to crude oil and refined petroleum products producers in Western Canada. In addition, GLM builds silos for solids handling systems in the coal, sand and cement industries. GLM employs over 300 skilled trades people and has production facilities located in Nisku (Edmonton) and Camrose, Alberta as well as Battleford, Saskatchewan. A new full-service plant in Grande Prairie, Alberta is scheduled to begin operation in October 2006.

As part of the acquisition transaction, the business and assets of GLM were re-organized such that the GLM business is currently conducted by GLM Industries LP. In connection with the acquisition and reorganization, the purchaser and the GLM operating entities entered into a secured credit facility with Alberta Treasury Branches.

Tanglewood was represented by in Canada by Burnet, Duckworth & Palmer LLP with a team that included John Cuthbertson, Mark Houston, David Ross and Candice Jones and in the U.S. by Vinson & Elkins with a team that included Jeff Floyd and Ed Osterberg. GLM was advised by Paul Lachambre, Q.C., of Cleall Barristers Solicitors and certain members of senior management of GLM were represented by Gina Ross of Burnet, Duckworth & Palmer LLP as to employment matters.

CAI was represented by Stikeman Elliott LLP with a team that included Simon Romano, John Lorito, Sandra Walker and Stacey Hoisak in Toronto and Barbara Johnston, Lisa McDowell and Kathryn Blair in Calgary. The other principal investor was represented by McCullough O'Connor Irwin LLP with a team that included Jonathan McCullough and James Beeby. The investor group was advised by Reinhold Krahn and Len Glass of Lawson Lundell LLP as to tax matters. Alberta Treasury Branches was represented by Alan du Heaume, Q.C., of Bishop & McKenzie LLP.