Background

"Some think the new economy is a young person's game in which the ordinary rules don't apply. They are wrong on both accounts. Their erroneous beliefs add strength to the reasons I wrote, and explain why I now revise and extend this book. To put simply, it is to provide a practical view of management and business realities and an explanation of the political and economic principles that underlie the successes of our our modern enconomy . . . . The LBO story I describe in Part II of this book is a simple account of how honorable men, advised by competent lawyers and investment bankers who never violated a confidence, carried out transactions in which everybody wins."

--Gordon A. Cain, "EVERYBODY WINS! A Life in Free Enterprise," 2nd edition, Chemical Heritage Foundation, 2001, ISBN 0-941901-28-9.

Dedication
	May 31, 2003 will mark the 91st birthday of the late entreprenuer, Mr. Gordan A. Cain. Senior Founding Principals, Bill McMinn and Virgil Waggoner and Founding Principals, Stewart Yonts and Greg Ford dedicate The Legacy Equity Group, LLC to the memory and in the spirit of this gentleman of gentlemen.

It is our hope that Mr. Cain’s integrity, courageous spirit, pragmatism, compassion for others, generosity, leadership, wisdom, and commitment to society at so many different levels will live on in those he left behind.

A brief biography of Mr. Cain is below. For more indepth information we recommend "EVERYBODY WINS! A Life in Free Enterprise," by Gordon Cain, 2nd edition, Chemical Heritage Press, 2001, ISBN 0-941901-28-9.

Mr. Gordon A. Cain (May 31, 1912 - October 22, 2002)

Gordon Arbuthnot Cain was born in Baton Rouge, LA and grew up in Baton Rouge, Calhoun and Rayville, LA. With no job prospects prior to graduation due to the Great Depression, Mr. Cain graduated from Louisiana State University with a degree in chemical engineering in 1933.

Until World War II, Mr. Cain worked as a chemical engineer at Freeport Sulphur and Merck. During the war, he served as a commander of a heavy mortar battalion, landing on Leyte and Okinawa. He received two Bronze Stars and a Purple Heart.

After World War II, Mr. Cain worked for Freeport Sulphur, Standard Perlite and FMC Corporation until he moved to Houston, Texas in 1955 to assist in the start-up of Petro-Tex Chemical, and joint venture between FMC and Tenneco.

In 1964, Mr. Cain became Vice President of Conoco overseeing Conoco’s chemical operations. Over the next seven years, Mr. Cain built Conoco’s chemical business from a mere $25 million in annual revenues to over $600 million in annual revenues. In 1970 he resigned from Conoco to focus on managing a variety of troubled businesses including a synthetic rubber company in Argentina, an oil refinery in Alaska, electronic companies in Boston and Houston, and a chemical company in Houston.

At the age of 70, Mr. Cain completed his first leveraged buyout -- the first of many successful transactions that transformed businesses that were not always in vogue -- into dynamic companies that generated significant returns for shareholders and employees. Recognizable companies include Sterling Chemicals, Cain Chemical, Vista Chemical, Fiber Industries and Arcadian Corporation.

Vista Chemical was taken public in 1986 and became a Fortune 500 company befored being purchased by RWE. Under Virgil Waggoner's leadership, Sterling Chemicals, owned 60% by employees, repayed acquisition debt and made super-dividend distributions prior to its IPO in late 1988. The Company then went on to acquire another successful business in 1992 and was eventually sold in 1996. Cain Chemical, headed-up by Bill McMinn, was formed in 1987 to acquire seven ethylene derivative petrochemical operations from five corporate sellers and with 43% of the equity owned by Cain employees, was sold a year later whereby its 1350 employees received more than $535 million. Fiber Industries, a polyester fiber business bought from Celanese, was sold two years later. Arcadian, which started in 1984 with the purchase of a small nitogen-based fertilizer business became the largest fertilizer company in the world.

In 1992, Mr. Cain’s focus shifted away from mainstream business transactions to medical research, bio-tech, high-tech and non-profit endeavors, all with with an eye to benefitting future generations and society in general.

Mr. Cain will be remembered most for the positive ways he touched the lives of literally thousands of men and women involved with his companies through superior leadership and management practices of like-minded men like Virgil Waggoner and Bill McMinn as well as making the employees equity and profit sharing partners.

The management philosophy and practices of Mr. Cain, Mr. McMinn and Mr. Waggoner tangibly demonstrated the significant value created by having more accountable boards, superior operating management and meaningful employee participation in profit and equity. Bankers, investment bankers, investors, employees, communities in which the Cain related companies operated and the economy as a whole benefitted from the Cain philosophy whereby transactions that made sense were executed in a true team manner in which everybody wins.