Leadership Change at Tropitone

Furniture World Magazine

Tropitone Furniture Co., a leading manufacturer of fine casual furniture, announced that Michael Echolds, who has served as the company’s chief executive officer since 1995 and who remains a significant shareholder, has decided to step aside as the company’s CEO. Cap Hendrix has been named the company’s new CEO. He served as a member of Tropitone’s board of directors between 1998 and 2007, during which time he played a key leadership role in shaping Tropitone’s successful business strategy. Echolds expects to continue to play an integral role as an advisor to Tropitone’s operating board and to assist Hendrix and the management team in developing and executing Tropitone’s future growth strategies. According to Echolds, during his tenure as Tropitone’s CEO throughout the past 13 years, he has achieved nearly all of the key milestones he set out to accomplish. This includes building a talented, hardworking and knowledgeable leadership team that has made it possible for Tropitone to outpace the growth and profitability of the company’s peers in the casual furniture industry. “Tropitone’s sales in both the retail and hospitality markets have grown dramatically in the past 13 years, and we have succeeded in maintaining this growth through several economic slowdowns. We also have achieved sustained profitability while continuing to design high-quality, durable, innovative and award-winning casual furniture collections. Now I want to devote more time to several of my personal priorities, including a number of philanthropic activities in which I’ve had a long-standing involvement,” Echolds said. According to James J. Norton, chairman of the Tropitone board of directors and managing director of Pfingsten Partners, which became the Tropitone’s majority shareholder in October 2007, Echolds has served Tropitone exceptionally well over the years and, as CEO, provided the leadership that has made it possible for the company to be a market leader in the casual furniture industry. “We have been pleased to work with Mike since we became the company’s majority shareholder and look forward to an ongoing opportunity to benefit from his expertise as one of the most respected individuals in the industry. We believe that Cap Hendrix’s experience not only at Tropitone but also at such companies as PepsiCo, Culligan Water Technologies, and at Thermador, the upscale kitchen appliance division of Masco Corporation, makes him uniquely-suited to lead Tropitone going forward. His leadership, coupled with the leadership of the other executives and employees on the Tropitone team – a team with whom Cap worked during his years on the Tropitone board of directors -- will make it possible for the company to further strengthen its presence in the casual furniture market and to pursue our substantial growth opportunities,” Norton said. Commenting on his new position, Hendrix said, “Over the years, Tropitone has achieved a strong and enviable market position. I am excited to serve as the company’s new CEO. We intend to build on Tropitone’s heritage and business success as we maximize future opportunities.” Hendrix began his career in the Frito-Lay division of PepsiCo in Dallas, Texas, serving in financial planning before progressing into marketing and the position of group product manager where he was responsible for multiple brands and new product development. After PepsiCo, Hendrix held progressively expanded executive leadership positions with E-II Holdings, Masco Corporation, The Toro Company, Culligan Water Technologies and US Filter Corporation where he was president of the consumer & commercial group, which included Culligan. Most recently, Hendrix has served on numerous boards of directors and provided marketing and enterprise strategy consulting services. He has broad-based experience working with consumer, commercial and industrial customers; direct and multi-step distribution systems; seasonal and cyclical demand patterns; demand-driven manufacturing with worldwide sourcing; development of highly-engineered new products; and sales and marketing strategies, including worldwide push and pull strategies. He also has led aggressive acquisition and integration strategies while sustaining organic growth and productivity. About Tropitone: Founded in 1954, Tropitone is based in Irvine, California, and is recognized throughout the casual furniture marketplace for its design leadership as well as its commitment to service and value. The company sells its products to retailers, designers and the hospitality trade under the Tropitone and Basta Sole trademarks. In addition to its headquarters and manufacturing plant in Irvine, the company operates manufacturing facilities in Temecula, California, and Sarasota, Florida. For more information about the company, visit www.tropitone.com. About Pfingsten Partners, L.L.C.: Chicago, Illinois-based Pfingsten Partners is an operationally oriented private equity firm, formed in 1989, to make equity investments in middle market manufacturing, distribution and business-to-business service companies. Since completing its first investment in 1991, Pfingsten Partners has acquired 55 companies and built value by providing capital, corporate finance and operating resources necessary to improve operations and achieve profitable business growth at its platform companies in partnership with management. For more information, visit www.pfingstenpartners.com