September 29, 2006
The Sterling Group, L.P. (“Sterling”), a Houston-based private equity firm and The Stephens Group, LLC of Little Rock, Arkansas (“Stephens”, and together, the “Investors”), today announced that they have finalized the acquisition of a majority stake in BTEC Turbines LP (“BTEC”). The acquisition was financed with equity and debt capital provided equally by the Investors.
Headquartered in a 200,000 square foot facility on the Houston Ship Channel, BTEC specializes in the refurbishment, repair and packaging of large gas turbines as well as turnkey power plant design, construction, commissioning and support (“EPC”). BTEC was founded in 1997 by current CEO and significant shareholder Mike Boyce with whom Sterling and Stephens are partnering. BTEC has worked on numerous projects since its inception, including fast track EPC projects rebuilding the power infrastructure in Iraq. BTEC is currently involved in a number of packaging and turnkey projects, including development of a 160 megawatt gas-fired power generation plant in Peru for BPZ Energy, Inc., a publicly traded oil and gas exploration and production corporation based in the United States.
Simultaneous with the acquisition of their ownership interests in BTEC, Sterling and Stephens financed BTEC’s purchase of an inventory of gas-fired turbines and balance of plant equipment through the acquisition of two currently non-operating gas-fired power plants. The first of these plants contains 8 large, recent vintage gas turbines. The second plant contains 6 large, older units which were refurbished. BTEC will use the acquired turbines and the balance of plant equipment for its power plant EPC projects.
About The Sterling Group, L.P.
The Sterling Group (www.sterling-group.com) is a private equity investment firm founded in 1982 that targets controlling interests in basic manufacturing, industrial services and distribution companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 33 portfolio companies and numerous add-on acquisitions for a total transaction value greater than $8 billion. Currently, Sterling has $600 million of committed capital under management. Current portfolio companies include Roofing Supply Group, CST Industries, Panolam Industries, North American Construction Group and Propex Fabrics.
About The Stephens Group, LLC
The Stephens Group, LLC, is a private, family-owned firm that invests its capital in private and public companies with exceptional management teams and high returns on invested capital in growing industries. The Stephens Group has over 70 years of history in successfully investing in both minority and control positions across multiple industries, and has large positions in gas production, media, communications, consumer, manufacturing and other industries. The Stephens Group typically provides equity capital of $5 million to $75 million dollars and looks to invest from $100-$200 million per year.
For additional information, please contact:
The Sterling Group, L.P.
Gary Rosenthal
(713) 877-8257
grosenthal@sterling-group.com
September 06, 2006
The Sterling Group, L.P. (“Sterling”), a Houston-based private equity firm, today announced that it has finalized the acquisition of a majority interest in the entities comprising the Roofing Supply Group (“RSG”).
Headquartered in Dallas, Texas, RSG is one of the largest wholesale distributors of roofing supplies and related materials in the United States. Through its network of 55 branches in 21 states, RSG provides one-step distribution services from the roofing product manufacturers to roofing contractors, home builders, retailers, and other end users.
Ron Pugh, founder of RSG, started the first branch in Houston in 1981. He was joined by Vin Perella and Rodney Burns, who opened the second branch in 1984, and then later by Dale Lowe to form the core management team and majority shareholders of RSG. Vin Perella has been named CEO of RSG at the closing of the acquisition, and Ron Pugh and Dale Lowe will remain active with RSG as board members and consultants to the company.
“Since the inception of RSG, our focus has been on our partner relationships and a continued emphasis on the entrepreneurial spirit throughout our organization. Continuing our culture, the key ingredient to our success was essential and Sterling provided the support necessary to maintain our culture and continue our successful growth. Sterling is a great fit and our future looks very bright together,” said RSG founder Ron Pugh.
“The people of RSG have built a tremendous business based on strong relationships with customers and suppliers and a remarkable record of successful growth. The Sterling Group is very pleased to have the opportunity to support and participate in their continued success,” said Hunter Nelson, a Principal with Sterling.
“I am extremely excited about partnering with The Sterling Group. They have embraced the culture that has made RSG the success that it is and have allowed our existing partners the ability to maintain an equity position in their branches. I am humbled and honored to lead such a talented and dedicated team,” said Vin Perella.
The acquisition was financed primarily with equity from Sterling Group Partners II, L.P. and its limited partners, as well as significant reinvestment by the RSG management team.
About The Sterling Group, L.P.
Founded in 1982, The Sterling Group (www.sterling-group.com) is a private equity investment firm that targets controlling interests in basic manufacturing, industrial services and distribution companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of over 30 portfolio companies and numerous add-on acquisitions for a total transaction value greater than $7 billion. Currently, Sterling has $600 million of committed capital under management through two funds, including Sterling Group Partners II, L.P. Current portfolio companies include Panolam Industries International, Inc., North American Construction Group Inc., Propex Fabrics Inc. and CST Industries, Inc.
For additional information:
The Sterling Group, L.P.
Kevin Garland
(713) 877-8257
kgarland@sterling-group.com
The Sterling Group is an operationally focused middle market private equity firm that builds winning businesses for customers, employees and investors.
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