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KKR invests in Channel Control Merchants

Channel Control Merchants (CCM), a retailer of secondary market inventories, announced today that they have completed an equity financing with KKR. Financial terms of the transaction have not been disclosed.

“We are pleased to have the backing of a sophisticated investment partner who has deep industry expertise investing in the retail sector. KKR understands our business well and shares our vision for the future. This is an exciting new chapter for our growing retail and export businesses and we look forward to our partnership with KKR,” says Robert A Roberts, CEO of Channel Control Merchants.

Owned by Robert . Roberts (CEO), Steven Wisch (Chairman of the Board of the Directors), and the Company’s management team, CCM is an extreme value retailer and exporter of brand sensitive secondary market inventories specialising in the purchase and resale of store level inventories from Fortune 500 and other well-known US retailers and manufacturers. The Company sells a wide variety of brand-name merchandise across multiple categories at exceptional savings at its more than 60 retail stores under the banners Dirt Cheap, Treasure Hunt and Dirt Cheap Building Supplies.

“CCM is led by an entrepreneurial and accomplished management team and the company offers an unmatched value proposition to corporations and consumers. We are thrilled to partner with Rob, Steven, and the entire CCM team as they look to extend the concept into existing and new markets” says Nate Taylor, a Member of KKR and Head of the Firm’s retail/consumer investment team.

For nearly four decades, KKR's private equity franchise has focused on investing in quality companies and partnering with management teams to help them grow. Since 1976, KKR has completed more than 260 private equity investments in portfolio companies with a total transaction value in excess of USD505 billion as of March 31, 2015. When making private equity investments, KKR seeks out strong business franchises, with attractive growth prospects, and leading market positions for either majority or growth-oriented stakes.

KKR has a long history of investing in and growing leading retail companies. KKR is making the investment from its North American XI private equity fund. Robert Roberts, Steven Wisch and the company’s management team will continue to be significant investors in the business.

Goldman Sachs served as financial advisor and Morrison Cohen served as legal counsel to Channel Control Merchants. Citigroup served as financial advisor and Simpson Thacher & Bartlett LLP served as legal counsel to KKR.

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