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Madison Dearborn Acquires GLD&D

Great Lakes Dredge & Dock Corporation announced on November 12 that it had signed a definitive agreement along with its majority owner Vectura Holding Company LLC, a portfolio company of Citigroup Venture Capital Ltd., to sell the company to an affiliate of Chicago-based private equity investment firm Madison Dearborn Partners LLC for $340 million in cash.

Madison Dearborn Partners and its affiliates manage equity capital in excess of $7.5 billion, and invest in companies that have strong management teams and prospects for significant long-term appreciation in equity value. In addition to having invested in a variety of general manufacturing and service industries, Madison Dearborn’s principals have developed investment expertise in several specific industry sectors, including basic industries, communications, health care, financial services, middle market, and consumer.

The sale of Great Lakes Dredge & Dock Corporation is subject to customary closing conditions, including review under the Hart-Scott-Rodino Act. The transaction is targeted to close by the end of 2003. All financing necessary to complete the transaction is committed. Credit Suisse First Boston and Dechert LLP advised Citigroup Venture Capital on the transaction. Lehman Brothers acted as the financial advisor to Madison Dearborn Partners, and Kirkland & Ellis LLP acted as the legal advisor.

Citigroup Venture Capital Ltd., along with management, purchased Great Lakes in July 1998 from Blackstone Dredging Partners LP. Citigroup Venture Capital Ltd. Is the equity investment arm of Citigroup, and manages more than $10 billion of assets.

“We have enjoyed our association with CVD and look forward to continuing our tradition of success with our new partners, Madison Dearborn,” said Douglas B. Mackie, president and chief executive officer of Great Lakes Dredge & Dock Corporation.

Great Lakes Dredge & Dock Corporation is a major provider of dredging services in the United States, and the only U.S. dredging company with significant international operations, which averaged 16 percent of its revenues over the past three years.

In the United States, Great Lakes competes in capital, maintenance and beach nourishment dredging. The company owns an 85 percent interest in North American Site Developers, Inc., a major provider of commercial and industrial demolition services, and owns a 50 percent interest in a marine mining operation in New Jersey that supplies aggregates for road and building construction.

Great Lakes has a 113-year history of never failing to complete a marine project, according to a company press release. The diverse fleet comprises more than 180 specialized vessels.

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