<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1 )*
----
Hines Horticulture, Inc.
(Name of Issuer)
Common Stock, par value $.01 per share
(Title of Class of Securities)
433245 10 7
(CUSIP Number)
Copy to:
Paul R. Wood James S. Rowe
Madison Dearborn Partners, Inc. Kirkland & Ellis
Three First National Plaza, Suite 3800 200 E. Randolph Drive
Chicago, Illinois 60602 Chicago, Illinois 60601
312/895-1000 312/861-2000
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
October 8, 1998
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Note: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are to
be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
(Continued on following pages)
Page 1 of 15 Pages
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 433245 10 7 PAGE 2 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Madison Dearborn Capital Partners, L.P.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
N/A (See Item 3)
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
0 (See Item 5)
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 10,785,628 (See Item 5)
-----------------------------------------------------------
EACH
9 SOLE DISPOSITIVE POWER
REPORTING
(See Item 5)
PERSON -----------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
10,785,628 (See Item 5)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
10,785,628 (See Item 5)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
48.9% (See Item 5)
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 433245 10 7 PAGE 3 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Madison Dearborn Partners, L.P.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
N/A
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
0 (See item 5)
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 10,785,268 (See item 5)
-----------------------------------------------------------
EACH
9 SOLE DISPOSITIVE POWER
REPORTING
0 (See item 5)
PERSON -----------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
10,785,268 (See item 5)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
10,785,268 (See item 5)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
48.9% (See item 5)
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 433245 10 7 PAGE 4 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Madison Dearborn Capital Partners II, L.P.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
OO
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
0 (See item 5)
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 1,000,000 (See item 5)
-----------------------------------------------------------
EACH
9 SOLE DISPOSITIVE POWER
REPORTING
0 (See item 5)
PERSON -----------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
1,000,000 (See item 5)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,000,000 (See item 5)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
4.5% (See item 5)
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 433245 10 7 PAGE 5 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Madison Dearborn Partners II, L.P.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
N/A
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
0 (See item 5)
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 1,000,000 (See item 5)
-----------------------------------------------------------
EACH
9 SOLE DISPOSITIVE POWER
REPORTING
0 (See item 5)
PERSON -----------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
1,000,000 (See item 5)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,000,000 (See item 5)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
4.5% (See item 5)
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 433245 10 7 PAGE 6 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Madison Dearborn Partners, Inc.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
N/A
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
0 (See item 5)
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 11,785,628 (See item 5)
-----------------------------------------------------------
EACH
9 SOLE DISPOSITIVE POWER
REPORTING
0 (See item 5)
PERSON -----------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
11,785,628 (See item 5)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
11,785,628 (See item 5)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
53.4% (See item 5)
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 433245 10 7 PAGE 7 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Paul R. Wood
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
N/A
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
5 TO ITEMS 2(d) or 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
0 (See item 5)
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 11,785,628 (See item 5)
-----------------------------------------------------------
EACH
9 SOLE DISPOSITIVE POWER
REPORTING
(See item 5)
PERSON -----------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
11,785,828 (See item 5)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
11,785,628 (See item 5)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
53.4% (See item 5)
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 433245 10 7 PAGE 8 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Thomas R. Reusche
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
N/A
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
0 (See item 5)
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 11,785,628 (See item 5)
-----------------------------------------------------------
EACH
9 SOLE DISPOSITIVE POWER
REPORTING
0 (See item 5)
PERSON -----------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
11,785,628 (See item 5)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
11,785,628 (See item 5)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
53.4% (See item 5)
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
Item 1. Security and Issuer:
-------------------
This statement relates to shares of common stock, par value $0.01
per share (the "Common Stock"), of Hines Horticulture, Inc., a Delaware
corporation (the "Company"), with its principal executive offices at 12621
Jeffrey Road, Irvine, California 92620.
Item 2. Identity and Background:
-----------------------
(a) This statement is being jointly filed by each of the
following persons pursuant to Rule 13d-(1)(f) promulgated by the Securities
and Exchange Commission pursuant to Section 13 of the Securities Exchange
Act of 1934, as amended (the "Act"): (i) Madison Dearborn Capital
Partners, L.P., a Delaware limited partnership ("MDCP, L.P."), by virtue of
its direct beneficial ownership of 10,785,628 shares of Common Stock; (ii)
Madison Dearborn Partners, L.P., a Delaware limited partnership ("MDP,
L.P."), by virtue of its being the general partner of MDCP, L.P.; (iii)
Madison Dearborn Capital Partners II, L.P., a Delaware limited partnership
("MDCP II, L.P."), by virtue of its direct beneficial ownership of
1,000,000 shares of Common Stock; (iv) Madison Dearborn Partners II, L.P.,
a Delaware limited partnership ("MDP II, L.P."), by virtue of its being the
general partner of MDCP II, L.P.; (v) Madison Dearborn Partners, Inc., a
Delaware corporation ("MDP, Inc."), by virtue of its being the general
partner of MDP, L.P. and the general partner of MDP II, L.P; (vi) Paul R.
Wood, an individual, by virtue of his being a Managing Director of MDP,
Inc. ("Wood"); and (vii) Thomas R. Reusche, an individual, by virtue of his
being a Managing Director of MDP, Inc. ("Reusche"), all of whom are
collectively referred to as the "Reporting Persons." The Reporting Persons
have entered into a Joint Filing Agreement, dated as of October 14, 1998, a
copy of which is filed with this statement as Exhibit A (which is hereby
incorporated by reference), pursuant to which the Reporting Persons have
agreed to file this amendment jointly in accordance with the provisions of
Rule 13d-1(f)(1) under the Act.
Certain information required by this Item 2 concerning the executive
officers and the directors of MDP, Inc., is set forth on Schedule A
attached hereto, which is incorporated herein by reference.
The Reporting Persons may be deemed to constitute a "group"for
purposes of Section 13(d)(3) of the Act. The Reporting Persons expressly
disclaim that they have agreed to act as a group other than as described in
this Statement.
(b) The address of the principal business and principal office of
the Reporting Persons and the persons named on Schedule A is c/o Madison
Dearborn Partners, Inc., Three First National Plaza, Suite 3800, Chicago,
IL 60602.
(c) The Reporting Persons and the persons named on Schedule A are
engaged in the private equity investment business.
(d) During the last five years, none of the Reporting Persons
nor, to the best knowledge of such persons, any of the persons named in
Schedule A to this statement, has been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors).
(e) During the last five years, none of the Reporting Persons
nor, to the best knowledge of such persons, any of the persons named in
Schedule A to this statement,
Page 9 of 15 Pages
<PAGE>
was a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction as a result of which any person was or is subject to
a judgement, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, federal or state securities
laws or finding any violation with respect to such laws.
(f) The Reporting Persons believe that all persons named in
Schedule A to this statement are citizens of the United States.
Item 3. Sources and Amount of Funds or Other Consideration:
--------------------------------------------------
This Amendment relates to the acquisition by MDCP II, L.P., a private
equity investment fund, of 1,000,000 shares of Common Stock at a price of
$6.875 per share for an aggregate purchase price of $6,875,000. MDCP II,
L.P. used a portion of such fund as the source of funds for this
transaction.
Item 4. Purpose of Transaction:
----------------------
On October 8, 1998, MDCP II, L.P. acquired 1,000,000 shares of the
Common Stock for its own account with the present intention of holding the
Common Stock for purposes of investment. Depending on market conditions and
other factors, including evaluation of the Company's business and
prospects, ability to dispose of the shares to a third party, ability to
dispose of shares in the market, availability of funds, alternative uses of
funds and general economic conditions, MDCP II, L.P. (as well as MDCP,
L.P.) may from time to time purchase additional securities of the Company
or dispose of all or a portion of its investment in the Company. The
Reporting Persons are filing this amended Schedule 13D to reflect the
material increase in the number of shares of Common Stock indirectly
beneficially owned by MDP, Inc.
None of the Reporting Persons nor, to the best knowledge of such
persons, any of the persons named on Schedule A to this statement, has any
present plans or proposals which relate to or would result in:
(a) The acquisition by any person of additional securities of the
Company, or the disposition of securities of the Company;
(b) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Company or any of
its subsidiaries;
(c) A sale or transfer of a material amount of assets of the Company
or of any of its subsidiaries;
(d) Any change in the present board of directors or management of the
Company, including any plans or proposals to change the number or
term of directors or to fill any existing vacancies on the board;
(e) Any material change in the present capitalization or dividend
policy of the Company;
(f) Any other material change in the Company's business or corporate
structure, including but not limited to, if the Company is a
registered closed-end investment company, any plans or proposals
to make any changes in its
Page 10 of 15 Pages
<PAGE>
investment policy for which a vote is required by Section 13 of
the Investment Company Act of 1940;
(g) Changes to the Company's charter, bylaws or instruments
corresponding thereto or other actions which may further impede
the acquisition of control of the Company by any person;
(h) Causing a class of securities of the issuer to be delisted from a
national securities exchange or to cease to be authorized to be
quoted in an inter-dealer quotation system of a registered
national securities association;
(i) A class of equity securities of the Company becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the
Securities Act of 1933, as amended; or
(j) Any action similar to any of those enumerated above.
Item 5. Interest In Securities of the Issuer:
------------------------------------
(a)-(b) As of October 8, 1998, MDCP, L.P. has the shared power to vote or
to direct the vote and shared power to dispose or to direct the disposition
of 10,785,628 shares of Common Stock, constituting approximately 48.9% of
the outstanding Common Stock of the Company. MDP, L.P., as the general
partner of MDCP, L.P., and MDP, Inc., as the general partner of MDP, L.P.,
may be deemed to have the shared power to vote and dispose of the
10,785,628 shares of Common Stock held by MDCP, L.P.
In addition, as of October 8, 1998, MDCP II, L.P. has the shared power
to vote or to direct the vote and shared power to dispose or to direct the
disposition of 1,000,000 shares of Common Stock, constituting 4.5% of the
outstanding Common Stock of the Company. MDP II, L.P., as the general
partner of MDCP, L.P., and MDP, Inc., as the general partner of MDP, L.P.,
may be deemed to have the shared power to vote and dispose of the 1,000,000
shares of Common Stock held by MDCP II, L.P.
MDP, Inc. therefore has the shared power to vote or to direct the vote
and shared power to dispose or to direct the disposition of a total of
11,785,628 shares of Common Stock, constituting 53.4% of the outstanding
Common Stock of the Company. As Managing Directors of MDP, Inc. and
directors of the Company, Wood and Reusche may be deemed, in such capacity,
to share the power to vote and to dispose of the shares of Common Stock
held by MDCP, L.P. and MDCP II, L.P.
Pursuant to Rule 13d-5(b)(1) under the Exchange Act, each of the
Reporting Persons may be deemed as members of a "group" to have beneficial
ownership of 11,785,628 shares of Common Stock, the aggregate number of
shares of Common Stock held by MDCP, L.P. and MDCP II, L.P., representing
approximately 53.4% of the outstanding Common Stock. The Reporting Persons
expressly disclaim that they have agreed to act as a group other than as
described in this Statement.
The filing of this Schedule 13D by MDP, Inc., MDP, L.P., MDCP, L.P.,
MDP II, L.P., MDCP II, L.P., Wood and Reusche shall not be considered an
admission that such Reporting Persons, for the purpose of Section 13(d) of
the Exchange Act, are the beneficial owners of any shares in which such
Reporting Persons do not have a pecuniary interest.
Page 11 of 15 Pages
<PAGE>
All of the percentages calculated in this Schedule 13D are based upon
an aggregate of 22,072,549 shares of Common Stock outstanding as of July
26, 1998, as disclosed to the Reporting Persons by the Company.
(c) See responses to Item 3 and 4 of this Statement.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer:
MDCP, L.P. entered into a Lock-Up Letter Agreement with the
underwriters of the Company's initial public offering pursuant to which
MDCP, L.P. agreed not to transfer any securities of the Company until
December 19, 1998. To the best knowledge of the Reporting Persons, no
other contracts, arrangements, understandings or relationships (legal or
otherwise) exist among the persons named in Item 2 or between such persons
and any other person with respect to any securities of the Company,
including but not limited to transfer or voting of any of the securities,
finders' fees, joint ventures, loan or option arrangements, puts or calls,
guarantees of profits, division of profits or loss, or the giving or
withholding or proxies.
Item 7. Material to be Filed As Exhibits:
Exhibit A -- Agreement Re Joint Filing of Schedule 13D.
Exhibit B -- Lock-Up Letter Agreement
Page 12 of 15 Pages
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of our knowledge and belief,
the undersigned certify that the information set forth in this amendment is
true, complete and correct.
Date: October 14, 1998
MADISON DEARBORN CAPITAL
PARTNERS, L.P.
By: Madison Dearborn Partners, L.P.
Its: General Partner
By: Madison Dearborn Partners, Inc.
Its: General Partner
By:
------------------------------------
/s/ Paul R. Wood, Managing Director
MADISON DEARBORN CAPITAL
PARTNERS II, L.P.
By: Madison Dearborn Partners II, L.P.
Its: General Partner
By: Madison Dearborn Partners, Inc.
Its: General Partner
By:
-------------------------------------
/s/ Paul R. Wood, Managing Director
MADISON DEARBORN PARTNERS,
L.P.
By: Madison Dearborn Partners, Inc.
Its: General Partner
By:
-------------------------------------
/s/ Paul R. Wood, Managing Director
Page 13 of 15 Pages
<PAGE>
MADISON DEARBORN PARTNERS II,
L.P.
By: Madison Dearborn Partners, Inc.
Its: General Partner
By:____________________________________
/s/ Paul R. Wood, Managing Director
MADISON DEARBORN PARTNERS,
INC.
By:____________________________________
/s/ Paul R. Wood, Managing Director
_______________________________________
/s/ Paul R. Wood
_______________________________________
/s/ Thomas R. Reusche
Page 14 of 15 Pages
<PAGE>
Schedule A
----------
The following individuals are executive officers of Madison Dearborn Partners,
Inc., the general partner of Madison Dearborn Partners, L.P. and Madison
Dearborn Partners II, L.P., which are the general partners of Madison Dearborn
Capital Partners, L.P. and Madison Dearborn Capital Partners II, L.P.,
respectively: Paul R. Wood, Thomas R. Reusche, David F. Mosher, Gary J. Little,
John Canning, Jr., Paul Finnegan, Samuel Mencoff, William Hinckler, James Perry,
Jr., Justin Huscher, Benjamin Chereskin, Timothy Sullivan, Nicholas Alexos and
Robin Selati. John Canning, Jr. is also the sole director of MDP, Inc.
Page 15 of 15 Pages
<PAGE>
Exhibit A
AGREEMENT REGARDING THE JOINT FILING OF
SCHEDULE 13D
_____________________
The undersigned hereby agree as follows:
(i) Each of them is individually eligible to use the Schedule 13D to
which this Exhibit is attached, and such Schedule 13D is filed on behalf of each
of them; and
(ii) Each of them is responsible for the timely filing of such
Schedule 13D and any amendments thereto, and for the completeness and accuracy
of the information concerning such person contained therein; but none of them is
responsible for the completeness or accuracy of the information concerning the
other persons making the filing, unless such person knows or has reason to
believe that such information is inaccurate.
Date: October 14, 1998
MADISON DEARBORN CAPITAL
PARTNERS, L.P.
By: Madison Dearborn Partners, L.P.
Its: General Partner
By: Madison Dearborn Partners, Inc.
Its: General Partner
By:___________________________________
/s/ Paul R. Wood, Managing Director
MADISON DEARBORN CAPITAL
PARTNERS II, L.P.
By: Madison Dearborn Partners, L.P.
Its: General Partner
By: Madison Dearborn Partners, Inc.
Its: General Partner
By:__________________________________
/s/ Paul R. Wood, Managing Director
<PAGE>
MADISON DEARBORN PARTNERS,
L.P.
By: Madison Dearborn Partners, Inc.
Its: General Partner
By:___________________________________
/s/ Paul R. Wood, Managing Director
MADISON DEARBORN PARTNERS II,
L.P.
By: Madison Dearborn Partners, Inc.
Its: General Partner
By:___________________________________
/s/ Paul R. Wood, Managing Director
MADISON DEARBORN PARTNERS,
INC.
- ------------------------------------
/s/ Paul R. Wood, Managing Director
- ------------------------------------
/s/ Paul R. Wood
- ------------------------------------
/s/ Thomas R. Reusche
<PAGE>
EXHIBIT B
LOCK-UP LETTER AGREEMENT
LEHMAN BROTHERS INC.
BT ALEX.BROWN INCORPORATED
BANCAMERICA ROBERTSON STEPHENS
As Representatives of the
several underwriters
c/o LEHMAN BROTHERS INC.
Three World Financial Center
New York, NY 10285
Dear Sirs:
The undersigned understands that you and certain other firms propose
to enter into an Underwriting Agreement (the "Underwriting Agreement") providing
for the purchase by you and such other firms (the "Underwriters") of shares (the
"Shares") of Common Stock, par value $0.01 per share (the "Common Stock"), of
Hines Horticulture, Inc. (the "Company") and that the Underwriters propose to
reoffer the Shares to the public (the "Offering").
In consideration of the execution of the Underwriting Agreement by the
Underwriters, and for other good and valuable consideration, the undersigned
hereby irrevocably agrees that, without the prior written consent of Lehman
Brothers Inc., the undersigned will not, directly or indirectly, (1) offer for
sale, sell, pledge, or otherwise dispose of (or enter into any transaction or
device that is designed to, or could be expected to, result in the disposition
by any person at any time in the future of) any shares of Common Stock
(including, without limitation, shares of Common Stock that may be deemed to be
beneficially owned by the undersigned in accordance with the rules and
regulations of the Securities and Exchange Commission and shares of Common Stock
that may be issued upon exercise of any option or warrant) or securities
convertible into or exchangeable for Common Stock (other than the Shares) owned
by the undersigned on the date of execution of this Lock-Up Letter Agreement or
on the date of the completion of the Offering, or (2) enter into any swap or
other derivatives transaction that transfers to another, in whole or in part,
any of the economic benefits or risks of ownership of such shares of Common
Stock, whether any such transaction described in clause (1) or (2) above is to
be settled by delivery of Common Stock or other securities, in cash or
otherwise, for a period of 180 days after the date of the final Prospectus
relating to the Offering. The restrictions described in this paragraph, however,
do not apply to (i) the sale of Common Stock to the Underwriters, (ii) the
issuance by the Company of shares of Common Stock upon the exercise of options
issued under the Company's 1998 Long-Term Equity Incentive Plan, as described in
the final Prospectus relating to the Offering, (iii) the transfer of Common
Stock by gift, will or laws of descent and distribution to any person or entity,
provided such person or entity agrees in writing to be bound by the provisions
of this Lock-Up Letter Agreement or (iv)
