<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. ____)*
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)
June 26, 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>
- ----------------------- ---------------------
CUSIP NO. 433245 10 7 13D 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) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
00 (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
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0 (See Item 5)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
10,785,628 (See Item 5)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0 (See Item 5)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
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>
- ----------------------- ---------------------
CUSIP NO. 433245 10 7 13D 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) [_]
- ------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0 (See Item 5)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
10,785,268 (See Item 5)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0 (See Item 5)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
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. 433245107 PAGE 4 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) [_]
- ------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 0 (See Item 5)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
10,785,628 (See Item 5)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0 (See Item 5)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
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
CO
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 433245107 PAGE 5 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Paul R. Wood
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [_]
- ------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 0 (See Item 5)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
10,785,628 (See Item 5)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0 (See Item 5)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
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
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 433245107 PAGE 6 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Thomas R. Reusche
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [_]
- ------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 0 (See Item 5)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
10,785,628 (See Item 5)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0 (See Item 5)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
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
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 433245 10 7 PAGE 7 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Gary J. Little
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [_]
- ------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 0 (See Item 5)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
10,785,628 (See Item 5)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0 (See Item 5)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
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
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 433245 10 7 PAGE 8 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
David F. Mosher
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [_]
- ------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 0 (See Item 5)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
10,785,628 (See Item 5)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0 (See Item 5)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
10,785,268 (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
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 Partners, Inc., a Delaware corporation ("MDP, Inc."), by
virtue of its being the general partner of MDP, L.P.; (iv) Paul R. Wood, an
individual, by virtue of his being a vice-president of MDP, Inc. ("Wood");
(v) Thomas R. Reusche, an individual, by virtue of his being a vice-
president of MDP, Inc. ("Reusche"); (vi) Gary J. Little, an individual, by
virtue of his being a vice-president of MDP, Inc.("Little"); and (vii)
David F. Mosher, an individual, by virtue of his being a vice-president of
MDP, Inc. ("Mosher"), all of whom are collectively referred to as the
"Reporting Persons." The Reporting Persons have entered into a Joint Filing
Agreement, dated as of July 6, 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 statement
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 director 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, 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
Page 9 of 15 Pages
<PAGE>
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:
MDCP, L.P., a private equity investment fund, acquired 500,000 shares
of Common Stock at a price of $10.23 per share for an aggregate purchase
price of $5,115,000. MDCP, L.P. used a portion of the fund as the source of
funds for this transaction.
Item 4. Purpose of Transaction:
MDCP, L.P. was the beneficial owner approximately 60.0% of the
outstanding capital stock of the Company prior to the Company's initial
public offering of its Common Stock on June 26, 1998 (the "Offering").
MDCP, L.P. purchased an additional 500,000 in the Offering at the initial
offering price, less underwriting discounts and commissions, for investment
purposes. Following the Offering, MDCP, L.P. is the beneficial owner of
48.9% of the Common Stock. The Reporting Persons are filing this Schedule
13D because MDCP, L.P.'s purchase on June 26, 1998, exceeded 2% of the
outstanding Common Stock of the Company.
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;
provided, that the Reporting Persons are aware that the Company
intends to appoint two independent directors in order to comply
with the rules of the Nasdaq National Market;
(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 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;
Page 10 of 15 Pages
<PAGE>
(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 June 26, 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 shares of Common
Stock held by MDCP, L.P. As vice-presidents of MDP, Inc., Wood, Reusche,
Mosher and Little 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.
The filing of this Schedule 13D by MDP, L.P., MDP, Inc., Wood,
Reusche, Mosher and Little 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.
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 June
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. has entered into a Lock-Up Letter Agreement with the
underwriters of the Offering pursuant to which MDCP, L.P. has agreed not to
transfer any securities of the Company for 180 days following the
Offering. 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 11 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 statement is
true, complete and correct.
Date: July 6, 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, Vice President
MADISON DEARBORN PARTNERS, L.P.
By: Madison Dearborn Partners, Inc.
Its: General Partner
By:
----------------------------------
/s/ Paul R. Wood, Vice President
MADISON DEARBORN PARTNERS, INC.
By:
----------------------------------
/s/ Paul R. Wood, Vice President
--------------------------------------
/s/ Paul R. Wood
--------------------------------------
/s/ Thomas R. Reusche
--------------------------------------
/s/ Gary J. Little
--------------------------------------
/s/ David F. Mosher
Page 12 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., which is the
general partner of Madison Dearborn Capital Partners, L.P.: Paul R. Wood, Thomas
R. Reusche, David F. Mosher, Gary J. Little, John A. Canning, Jr., Paul J.
Finnegan, Samuel M. Mencoff, William J. Hunckler, James N. Perry, Jr., Justin S.
Huscher, Benjamin D. Chereskin, Timothy P. Sullivan, Nicholas W. Alexos and
Robin P. Selati. John A. Canning, Jr. is also the sole director of MDP, Inc.
Page 13 of 15 Pages
<PAGE>
Exhibit A
---------
AGREEMENT REGARDING THE JOINT FILING OF
SCHEDULE 13G
_____________________
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: July 6, 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, Vice President
MADISON DEARBORN PARTNERS,
L.P.
By: Madison Dearborn Partners, Inc.
Its: General Partner
By:
----------------------------------
/s/ Paul R. Wood, Vice President
MADISON DEARBORN PARTNERS,
INC.
----------------------------------
/s/ Paul R. Wood, Vice President
----------------------------------
/s/ Paul R. Wood
Page 14 of 15 Pages
<PAGE>
----------------------------------
/s/ Thomas R. Reusche
----------------------------------
/s/ Gary J. Little
----------------------------------
/s/ David F. Mosher
Page 15 of 15 Pages
<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)
<PAGE>
transactions by any person other than the Company relating to shares of Common
Stock or other securities acquired in open market transactions after completion
of the Offering.
In furtherance of the foregoing, the Company and its Transfer Agent are
hereby authorized to decline to make any transfer of securities if such transfer
would constitute a violation or breach of this Lock-Up Letter Agreement.
It is understood that, if the Company notifies you that it does not intend
to proceed with the Offering, if the Underwriting Agreement is not executed or
is terminated by its terms, or if the Underwriting Agreement (other than the
provisions thereof which survive termination) shall terminate or be terminated
prior to payment for and delivery of the Shares, we will be released from our
obligations under this Lock-Up Letter Agreement.
The undersigned understands that the Company, the Underwriters and the
stockholders selling shares in the Offering will proceed with the Offering in
reliance on this Lock-Up Letter Agreement.
The undersigned hereby represents and warrants that the undersigned has
full power and authority to enter into this Lock-Up Letter Agreement and that,
upon request, the undersigned will execute any additional documents necessary in
connection with the enforcement hereof. Any obligations of the undersigned shall
be binding upon the heirs, personal representatives, successors and assigns of
the undersigned.
Very truly yours,
By: Madison Dearborn Capital Partners, L.P.
By: Madison Dearborn Partners, Inc.
Its: General Partner
Name: /s/ Paul R. Wood
Title: Vice President
Dated: June 4, 1998
