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Acquisition
Houston, TX January 3, 2018

Construction Supply Group, A Portfolio Company of The Sterling Group, Acquires Brock White of Wisconsin

Construction Supply Group, A Portfolio Company of The Sterling Group, Acquires Brock White of Wisconsin

The Sterling Group, a Houston-based middle market private equity firm, announced that its portfolio company, Construction Supply Group (“CSG”), has completed the acquisition of Brock White of Wisconsin, a construction supply distributor in the Milwaukee, Wisconsin area. Construction Supply Group is a leader in the distribution of construction materials, accessories and tools, primarily for professional concrete and masonry contractors in the United States and Canada. The combined company has 73 branches with 1,150 employees and offers over 70,000 SKUs to nearly 25,000 customers.

Brock White of Wisconsin is the sixth acquisition by Sterling as a part of the Construction Supply platform. Brock White of Wisconsin spun out of CSG’s Brock White subsidiary in 1973 and has been operating in the Milwaukee area since that time. Following the transaction, Brock White of Wisconsin will be integrated into Brock White and will continue to go to market under the Brock White name. “Construction Supply Group and Brock White are the perfect fit for our company,” said Julie Anderson, Owner and President of Brock White of Wisconsin. “My father acquired the business from Brock White in 1973. By rejoining with Brock White, the business has come full circle. We are excited about the combined company’s future.”

“This acquisition continues our path toward building North America’s leading construction supply distributor. The business gives us better access to serve the Milwaukee market. We are excited to add another great team with many years of experience and success to the CSG family,” said Mitch Williams, CEO of Construction Supply Group.

In late 2016, Sterling acquired Brock White Company, LLC, Border Construction Specialties, LLC and Stetson Building Products to form Construction Supply Group. The company later executed a carve-out of five Gerdau distribution branches and the acquisition of Carter Waters, extending its footprint throughout the Midwest. Construction Supply Group will continue to seek further additions to its family of construction distribution businesses.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 51 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

Acquisition
Houston, TX December 11, 2017

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires MobileView® from Interlogix

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires MobileView® from Interlogix

The Sterling Group, a private equity firm based in Houston, Texas, announced that its portfolio company, Safe Fleet, has completed the acquisition of MobileView (“MOBILEVIEW”) from Interlogix, a part of UTC Climate, Controls & Security, a unit of United Technologies Corp.  This marks Safe Fleet’s tenth acquisition during Sterling’s ownership, as well as their third corporate carve-out. Safe Fleet is a leading supplier of safety components for fleet vehicles.

MOBILEVIEW is the leading provider of mobile surveillance and video management solutions to more than 35,000 transit bus and rail vehicles in the United States. MOBILEVIEW’S products enable transportation professionals to capture, record, analyze, and control video evidence to enhance security, maximize resources, and increase vehicle uptime.

“MOBILEVIEW’S solutions are best-in-class servicing a significant number of transit agencies in North America. We believe the addition of MOBILEVIEW to Safe Fleet’s leading video positions in school and transit bus, fire, law enforcement, waste, and commercial markets extends Safe Fleet’s position as the largest global provider of video solutions to the fleet market,” stated John Knox, CEO of Safe Fleet.  Safe Fleet’s acquisition of MOBILEVIEW is the company’s sixth acquisition in the video and telematics sector.

“Sterling and Safe Fleet management have partnered together to build a winning business in Safe Fleet,” said Brian Henry, Partner at The Sterling Group.  “Through a series of organic initiatives and a wide variety of acquisitions, we have built a business that better serves customers.”

About Safe Fleet

Headquartered in Belton, MO, Safe Fleet owns a portfolio of brands that provide safety solutions to fleet vehicle manufacturers and operators around the world.  These brands serve several major markets including: Bus, Rail, RV, Truck & Trailer, Work Truck, Law Enforcement, Emergency, Waste, Industrial and Military.  With over 1,100 employees and 10 manufacturing locations, Safe Fleet targets markets with increasing demand for operator, passenger, and pedestrian safety. For more information about Safe Fleet and our portfolio of brands please visit www.safefleet.net.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 51 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

Acquisition
Houston, TX October 25, 2017

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires COBAN Technologies, Inc.

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires COBAN Technologies, Inc.

The Sterling Group, a private equity firm based in Houston, Texas, announced that its portfolio company, Safe Fleet, has completed the acquisition of COBAN Technologies, Inc. (“COBAN”). This marks Safe Fleet’s ninth acquisition during Sterling’s ownership.  Safe Fleet is a leading supplier of safety components for fleet vehicles.

COBAN is a leading supplier of body cameras and in-car video solutions for law enforcement.  “COBAN is an excellent addition to Safe Fleet’s portfolio.  We believe the combination of COBAN’s position in law enforcement with Safe Fleet’s leading video positions in School and Transit Bus, Fire, Waste, and Commercial markets establishes Safe Fleet as the largest global provider of video solutions to the fleet market,” stated John Knox, CEO of Safe Fleet.  “Safe Fleet/COBAN is now the only video provider able to comprehensively supply common and integrated video solutions to all First Responder departments as well as all municipal fleet markets.”

“The partnership with COBAN further strengthens Safe Fleet’s robust family of technology and safety solutions for a growing list of fleet end markets,” said Gary Rosenthal, Partner at The Sterling Group. COBAN marks the company’s fifth acquisition in the video and telematics sector.

About Safe Fleet

Headquartered in Belton, MO, Safe Fleet owns a portfolio of brands that provide safety solutions to fleet vehicle manufacturers and operators around the world.  These brands serve several major markets including: Bus, Rail and RV, Truck and Trailer, Work Truck, Emergency, Waste, and Industrial and Military.  With over 1,100 employees and 10 manufacturing locations, Safe Fleet targets markets with increasing demand for operator, passenger, and pedestrian safety. For more information about Safe Fleet and our portfolio of brands please visit www.safefleet.net.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 52 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.1 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

News
Houston, TX July 24, 2017

The Sterling Group Completes the Sale of DexKo Global Inc. to KPS Capital Partners

The Sterling Group Completes the Sale of DexKo Global Inc. to KPS Capital Partners

The Sterling Group, an operationally focused middle market private equity firm, completed the sale of DexKo Global Inc. (“DexKo”) to funds managed by KPS Capital Partners, LP.   Financial terms of the transaction were not disclosed.

DexKo is the leading global supplier of highly engineered running gear technology, chassis assemblies and related components with over 130 years of trailer and caravan componentry experience. The company is headquartered in Novi, Michigan and employs over 4,500 employees with 39 manufacturing facilities and 25 distribution centers across the globe. Sterling formed DexKo at the end of 2015 through the combination of Dexter Axle and AL-KO Vehicle Technology.

“Sterling’s partnership with the deep and talented management team at DexKo has resulted in a complete transformation of the business over the last several years,” said Kevin Garland, a Partner at The Sterling Group.  “We look forward to the company’s future success in the years to come.”  Sterling will continue to own a minority stake in DexKo.

Goldman Sachs & Co. and J.P. Morgan Securities LLC served as financial advisors to DexKo.  Harris Williams & Co. acted a special advisor to the Board, and Willkie Farr & Gallagher acted as legal counsel.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 51 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

Acquisition
Houston, TX July 6, 2017

Construction Supply Group, A Portfolio Company of The Sterling Group, Acquires Carter Waters

Construction Supply Group, A Portfolio Company of The Sterling Group, Acquires Carter Waters

The Sterling Group, a Houston-based middle market private equity firm, announced that its portfolio company, Construction Supply Group, has completed the acquisition of Carter Waters.  Construction Supply Group is a leader in the distribution of construction materials and accessories and tools, primarily for professional concrete and masonry contractors in the United States and Canada. The combined company has 72 branches with 1,150 employees and offers over 70,000 SKUs to nearly 25,000 customers.

Carter Waters is the fifth business acquired by Sterling as part of the Construction Supply platform. In late 2016, Sterling acquired Brock White Company, LLC, Border Construction Specialties, LLC and Stetson Building Products to form Construction Supply Group. Brock White, Border and Stetson have strong branch footprints in Western Canada, the Upper Midwest and the Southwest.  The company later executed a carve-out of five Gerdau distribution branches in the Midwest.  The acquisition of Carter Waters’ 19 construction distribution branches will expand the company’s lower Midwest footprint ranging from Kansas to Ohio.

“We are thrilled to welcome the Carter Waters team to the Construction Supply family. They have built an exceptional business that will continue to provide exceptional service to customers while expanding our footprint,” said Mitch Williams, CEO of Construction Supply Group.

The scale of Construction Supply has grown rapidly through the combination of 5 leading distributors, each with no more than 20 branches but with exceptional track records of growth, customer service and loyal customer relationships. Construction Supply Group will continue to seek further additions to its family of construction distribution businesses.

Willkie Farr & Gallagher provided legal counsel to Construction Supply Group.  Raymond James served as Carter Waters’ exclusive financial advisor.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 51 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

Exits
Houston, TX May 30, 2017

The Sterling Group Agrees to Sell DexKo Global Inc. to KPS Capital Partners

The Sterling Group Agrees to Sell DexKo Global Inc. to KPS Capital Partners

The Sterling Group, an operationally focused middle market private equity firm, today announced a definitive agreement to sell DexKo Global Inc. (“DexKo”) to funds managed by KPS Capital Partners, LP.   Financial terms of the transaction were not disclosed.

DexKo is the leading global supplier of highly engineered running gear technology, chassis assemblies and related components with over 130 years of trailer and caravan componentry experience. The company is headquartered in Novi, Michigan and employs over 4,500 employees with 39 manufacturing facilities and 25 distribution centers across the globe. Sterling formed DexKo at the end of 2015 through the combination of Dexter Axle and AL-KO Vehicle Technology.

“Sterling’s partnership with the deep and talented management team at DexKo has resulted in a complete transformation of the business over the last several years,” said Kevin Garland, a Partner at The Sterling Group.  “We look forward to the company’s future success in the years to come.”  Sterling will continue to own a minority stake in DexKo.

Completion of the transaction is expected in mid-2017 and is subject to customary closing conditions and approvals. Goldman Sachs and J.P. Morgan Securities LLC served as financial advisors to DexKo.  Harris Williams & Co. acted as a special advisor to the Board, and Willkie Farr & Gallagher acted as legal counsel.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 51 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

Acquisition
Houston, TX May 3, 2017

Construction Supply Group, A Portfolio Company of The Sterling Group, Acquires Five Gerdau Construction Products Branches

Construction Supply Group, A Portfolio Company of The Sterling Group, Acquires Five Gerdau Construction Products Branches

The Sterling Group, a Houston-based middle market private equity firm, announced the acquisition of five distribution branches from Gerdau Construction Products. The branches will become a part of Sterling’s portfolio company, Construction Supply Group.

Construction Supply Group is a leader in the distribution of construction materials, accessories and tools, primarily for professional concrete and masonry contractors in the United States and Canada. The combined company has 53 branches with 850 employees and offers over 70,000 SKUs to nearly 25,000 customers.

In late 2016, Sterling acquired Brock White Company, LLC, Border Construction Specialties, LLC and Stetson Building Products to form Construction Supply Group. Brock White, Border and Stetson each have strong branch footprints in Western Canada, the Upper Midwest and the Southwest.  The acquisition of the five Gerdau branches in Appleton, Wisconsin; Madison, Wisconsin; Decatur, Illinois; Urbana, Illinois and Eldridge, Iowa will allow Construction Supply Group to further serve customers in those territories.

“The Gerdau branch additions will further strengthen our footprint and ability to provide exceptional service to customers. We look forward to partnering with the Gerdau employees as we continue to build the platform,” said Mitch Williams, CEO of Construction Supply Group.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 51 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

News
Houston, TX April 12, 2017

Lynx FBO Network Appoints Scott Kelly and Dan Bucaro to the Board of Directors

Lynx FBO Network Appoints Scott Kelly and Dan Bucaro to the Board of Directors

Lynx FBO Network, a buy-and-build effort in the FBO (fixed base operator) industry, today announced the appointment of Scott Kelly, retired astronaut and US Navy captain, and Dan Bucaro, former CEO of Landmark Aviation, to its Board of Directors. In September 2016,The Sterling Group, a middle market private equity firm focused on industrial businesses, began executing a plan to build a leading FBO network providing general aviation services.  Lynx completed four acquisitions in the first four months of operations.

Scott Kelly is an astronaut and retired US Navy Captain who is a veteran of four space flights and commanded the International Space Station on three different expeditions. Dan Bucaro has been involved in the FBO industry for over 15 years, having built the Trajen, Encore and Landmark businesses. Dan was most recently CEO of Landmark Aviation, an FBO network with 70 locations that was sold by The Carlyle Group to BBA Aviation in February 2016.

“Scott will bring invaluable strategic and operational direction to the Board, and Dan brings unparalleled experience and success in the FBO industry,” said Greg Elliott, a Partner at The Sterling Group.“We are thrilled to be adding strength to the already deep team at Lynx.”

In addition, the company announced that Matt DeLellis joined as Chief Financial Officer and Leslie McIntyre joined as Executive Vice President of Human Resources. DeLellis was formerly the Senior Vice President for Strategy and Corporate Development and McIntyre was the Vice President of Human Resources, both at Landmark Aviation.

Sterling has assembled a strong and experienced team to build the new network. Greg Elliott, has been involved in building several FBO networks in the past fifteen years, including roles as the Chairman of Encore and Trajen, and Board member of Landmark Aviation.  Chad Farischon and Tyson Goetz are former members of the Trajen, Atlantic Aviation, and Landmark Aviation management teams and have been involved with the purchase and integration of over 50 FBOs over the course of their careers. Lynx is the sole service provider at air fields near Destin, Florida; Portland, Oregon; and Minneapolis, Minnesota and is actively pursuing further acquisitions.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 50 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management.  For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

Acquisition
Houston, TX February 6, 2017

The Sterling Group Completes the Acquisition of Time Manufacturing Company

The Sterling Group Completes the Acquisition of Time Manufacturing Company

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that it acquired Time Manufacturing Company (“Time”) from O’Flaherty Holdings Limited.

Headquartered in Waco, Texas, Time is a global designer, manufacturer, and distributor of vehicle-mounted aerial lifts primarily for the telecom and electric utility end markets.   Time has pioneered several brands within the aerial lift market, including the market leading Versalift brand. The business had been owned by the O’Flaherty family for over 40 years.

“Sterling is the right partner for Time as we continue to pursue the significant growth opportunities that exist for the company today,” said Charles Wiley, CEO of Time.  “The Time team is excited to partner with Sterling, and together we expect continued success in this next phase of our company’s history.”

“The team at Time has built the company into an industry leader that provides outstanding products and services to its customers, and we look forward to further supporting their future growth,” said Kent Wallace, a Partner at The Sterling Group. Sterling has a long history of partnering with management teams of family- and entrepreneur-owned businesses in the industrial sector.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of over 50 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

Acquisition
Houston, TX January 16, 2017

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires Randall Manufacturing

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires Randall Manufacturing

The Sterling Group, a private equity firm based in Houston, Texas, announced that its portfolio company, Safe Fleet, has completed the acquisition of Randall Manufacturing LLC (“Randall”). This marks Safe Fleet’s eighth acquisition during Sterling’s ownership.  Safe Fleet is a leading supplier of safety components for fleet vehicles.

Based in suburban Chicago, Illinois, Randall is a leading manufacturer of specialized safety products used mainly in refrigerated semi-trailers in connection with the transportation of food and beverages. “Randall is an excellent addition to Safe Fleet’s portfolio. Through innovation and consistent execution, Randall has developed a high level of brand equity and trust with their customers and end-users,” stated John Knox, CEO of Safe Fleet. “The Randall brand and product line strongly complements Safe Fleet’s truck and trailer offerings. We are delighted to welcome Fred Jevaney and the Randall organization to Safe Fleet.”

Safe Fleet provides a wide variety of safety-and productivity-oriented components to bus, rail, RV, truck and trailer, work truck, emergency, waste, industrial and military end markets. “The addition of the Randall team and product will further Safe Fleet’s ability to offer a full line of safety solutions to our wide range of fleet customers,” said Brian Henry, a Partner at The Sterling Group.

Safe Fleet has more than doubled in size during its partnership with Sterling and will continue to pursue both organic and acquisition related growth.

 About Safe Fleet

Headquartered in Belton, MO, Safe Fleet owns a portfolio of brands that provide safety solutions to fleet vehicle manufacturers and operators around the world.  These brands serve several major markets including: Bus, Rail and RV, Truck and Trailer, Work Truck, Emergency, Waste, and Industrial and Military. Within Truck and Trailer, the ROM and Bustin brands provide a variety of access and safety products specific to over the road semi-trailers, including refrigerated semi-trailers. With over 1,100 employees and 10 manufacturing locations, Safe Fleet targets markets with increasing demand for operator, passenger, and pedestrian safety. For more information about Safe Fleet and our portfolio of brands please visit www.safefleet.net.

 About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 50 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management.  For further information please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

Acquisition
Houston, TX January 3, 2017

Lynx FBO Network, a Portfolio Company of The Sterling Group, Acquires Two New Locations

Lynx FBO Network, a Portfolio Company of The Sterling Group, Acquires Two New Locations

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that its platform company, Lynx FBO Network, has completed two acquisitions at Anoka County-Blaine Airport serving the Minneapolis/St. Paul metropolitan area, with prime access to US Bank Stadium and downtown Minneapolis. Lynx simultaneously acquired both Cirrus Flight Operations and Key Air Twin Cities. “We look forward to bringing the Lynx level of service and our extensive FBO expertise to the Minneapolis/St. Paul area,” said Chad Farischon, a Partner with Lynx.

In August 2016, Sterling launched Lynx, a buy-and-build effort in the FBO industry, and is executing a plan to build a leading FBO network providing general aviation services. The Cirrus and Key locations at Anoka mark the third and fourth acquisitions for Lynx during the first four months of operations.

“Key Air Twin Cities has developed world class FBO terminal and hangar facilities, a state of the art fuel farm, and a large ramp capable of handling significant aircraft activity in a safe and efficient manner. Those attributes combined with the Lynx team’s experience in handling special events, the ease of access to US Bank stadium, and a group of talented employees joining our team from both Cirrus and Key make Lynx the optimal location to serve our customers during the 2018 Super Bowl,” stated Tyson Goetz, a Partner with Lynx.

Sterling has assembled a strong and experienced team to build the new network. Greg Elliott, a Partner at The Sterling Group, has been involved in building several FBO networks in the past fifteen years, including roles as the Chairman of Encore and Trajen, and Board member of Landmark Aviation. Chad Farischon and Tyson Goetz are former members of both the Trajen, Atlantic Aviation, and Landmark Aviation management teams and have purchased and integrated over 50 FBOs over the course of their careers. The pipeline for further acquisitions remains strong.

“Anoka County is an excellent addition to our rapidly growing network,” said Greg Elliott. Lynx currently operates locations near Destin, Florida, Portland, Oregon and now Minneapolis, Minnesota. Lynx and Sterling are actively seeking acquisitions in North America.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 50 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management.  For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

Acquisition
Houston, TX December 30, 2016

Construction Supply Holdings, A Portfolio Company of The Sterling Group, Acquires Stetson Building Products, Inc.

Construction Supply Holdings, A Portfolio Company of The Sterling Group, Acquires Stetson Building Products, Inc.

The Sterling Group, a Houston-based middle market private equity firm, announced the acquisition of Stetson Building Products, Inc. Stetson is the third business comprising the newly formed Construction Supply Holdings. Stetson is a management owned construction supply distributor with nine branches and a distribution center in the Midwest.

In November 2016, Sterling completed the simultaneous acquisitions of Brock White Company, LLC and Border Construction Specialties, LLC to form Construction Supply Holdings. Each an industry leader in their respective markets, Brock White and Border have strong branch footprints in the Western Canada, the Upper Midwest and the Southwest. The addition of Stetson further expands the company’s presence in the Midwest and adds technical expertise in the reinforcing steel fabrication and form rental categories.

Construction Supply Holdings is a leader in the distribution of construction materials, accessories and tools, primarily for professional concrete and masonry contractors in the United States and Canada. The combined company has 48 branches with 750 employees and offers over 70,000 SKUs for nearly 25,000 customers.

“Sterling has a vision to build a best-in-class distribution business, and the entire Stetson team is excited about being a part of that success,” said Marte Cook, President of Stetson. “The opportunity to join forces with Brock White and Border made Sterling the ideal partner for the next phase of our company’s growth.”

“The Stetson team has a fantastic reputation, and we look forward to drawing on the unique strengths of the Brock White, Border and Stetson organizations to continue to build the platform,” said Brian Henry, a Partner at The Sterling Group. Sterling has a long history of partnering with management to build businesses and transform segments of the building products industry, including successful investments in Roofing Supply Group and American Bath Group.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 50 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

News
Houston, TX November 2, 2016

The Sterling Group Announces the Creation of New Construction Supply Platform

The Sterling Group Announces the Creation of New Construction Supply Platform

The Sterling Group, a Houston-based middle market private equity firm, announced the formation of a new platform in the construction supply distribution industry.  Today Sterling completed the simultaneous acquisitions of Brock White Company, LLC and Border Construction Specialties, LLC, each an industry leader in its respective markets.

Headquartered in St. Paul, Minnesota, Brock White was founded in 1954 and operates 29 branches in the Upper Midwest and western Canada.  Headquartered in Phoenix, Arizona, Border was founded in 1955 and operates 10 branches in the Southwestern United States. Together, the new business will be a national leader in the distribution of construction materials, accessories and tools, primarily for professional concrete and masonry contractors in the United States and Canada. The combined company will have 39 branches with 625 employees and offer over 40,000 SKUs for nearly 20,000 customers. “Sterling has a vision to build a national leader in our industry, and we are thrilled about the partnership with Sterling and Border to execute on that plan,” said Rick Garland, President of Brock White. “Sterling’s experience in branch-based building products businesses and the opportunity to join forces with Brock White made Sterling the ideal partner for the next phase of our company’s growth,” said Brian Saker, CEO of Border.

“Both businesses have outstanding reputations as trusted partners for both suppliers and customers in their respective geographies,” said Brian Henry, a Partner at The Sterling Group. “We look forward to drawing on the unique strengths of the Brock White and Border organizations to continue to build the platform.” Sterling has a long history of partnering with management to build businesses and transform segments of the building products industry, including successful investments in Roofing Supply Group and American Bath Group.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 50 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

News
Houston, TX October 31, 2016

Lynx FBO Network, a Portfolio Company of The Sterling Group, Acquires Aurora Jet Center

Lynx FBO Network, a Portfolio Company of The Sterling Group, Acquires Aurora Jet Center

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced the new name of its buy-and-build in the FBO industry, Lynx FBO Network (“Lynx”). Sterling has dedicated significant resources from its recent $1.25 billion fund to build Lynx into a leading FBO network providing fuel, ramp and other services to the general aviation industry.

Sterling also announced Lynx’s acquisition of Aurora Jet Center at the Aurora State Airport serving the Portland, Oregon metropolitan area. “Aurora Jet Center is the primary provider on the airfield and has been growing substantially over the past several years. It is an exceptional addition to our new network,” said Chad Farischon and Tyson Goetz, leaders of Lynx.

Sterling has assembled a strong and experienced team to build the new network. Greg Elliott, a Partner at The Sterling Group, has been involved in building several FBO networks in the past fifteen years, including roles as the Chairman of Encore and Trajen, and Board member of Landmark Aviation. Chad Farischon and Tyson Goetz are former members of both the Trajen and Landmark Aviation management teams and have purchased and integrated over 50 FBOs over the course of their careers.

“This acquisition is further affirmation that we partnered with the right team,” said Greg Elliott. “The first two locations, both primary providers at their respective airports, are perfect representations of our vision for the Lynx network. We are just getting started.”

Lynx currently boasts locations in Destin, Florida and Aurora, Oregon. Sterling and management are actively seeking acquisitions in North America.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 49 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management.  For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

News
Houston, TX October 5, 2016

The Sterling Group Announces Formation of New FBO Network, Acquires Destin Jet

The Sterling Group Announces Formation of New FBO Network, Acquires Destin Jet

The Sterling Group, a middle market private equity firm based in Houston, Texas, announced the creation of a new fixed based operator (“FBO”) network and the acquisition of Destin Jet. Today’s acquisition of Destin Jet, an FBO located at the Destin Executive Airport in Destin, Florida, is the first location in the new network.

Sterling has assembled a strong and experienced team to build the new network. Greg Elliott, a Partner at The Sterling Group, has been involved in building several FBO networks in the past fifteen years, including roles as Chairman of Encore and Trajen, and Board member of Landmark Aviation. Chad Farischon and Tyson Goetz, former members of both the Trajen and Landmark Aviation management teams, will lead and manage the network, executing a buy-and-build strategy. Chad and Tyson have purchased and integrated over 50 FBOs over the course of their careers.

“Sterling is thrilled to partner with a talented team in Chad and Tyson,” said Greg Elliott. “Having worked together at both Trajen and Landmark, we knew that they were the right leaders to build a premiere network.”

“Sterling shares our vision to build a national leader in aviation services,” said Tyson Goetz. “Given their past experience in the industry and their track record of partnering with entrepreneurs to grow businesses through acquisitions, Sterling was the ideal partner for us.”

Destin Jet, the sole service provider on the Destin Executive Airport field, serves resort destinations in the Florida panhandle area and the Emerald Coast. Destin Jet’s facilities are world-class, featuring modern terminals with a wide range of passenger and crew amenities.

“We are looking forward to working with the airport and becoming an active member in the community,” stated Chad Farischon. “Destin is the perfect first location for our network given the best-in-class customer service and facilities, all built out under the superb leadership of Jay Odom. We look forward to building on this successful model across the country.”

Sterling and management are actively seeking acquisitions in North America.

About The Sterling Group
Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 49 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.4 billion of assets under management. For further information, please visit www.sterling-group.com.

News
Houston, TX August 3, 2016

Specified Air Solutions, A Portfolio Company of The Sterling Group, Acquires Dectron Inc.

Specified Air Solutions, A Portfolio Company of The Sterling Group, Acquires Dectron Inc.

Specified Air Solutions, a market leading manufacturer of semi-custom commercial and industrial HVAC equipment, has completed the acquisition of the Dectron pool dehumidification systems business (“Dectron”) from the Lakdawala family. Specified Air is a portfolio company of The Sterling Group, a Houston-based middle market private equity firm.

Headquartered in Montreal, Quebec, Dectron is a global provider of highly-engineered custom and semi-custom dehumidification, air quality and energy recovery solutions primarily for indoor pools.  “Dectron is a strong addition to Specified Air’s broad portfolio of products that provide solutions across a wide variety of commercial and industrial HVAC needs,” said Charley Brown, CEO of Specified Air Solutions. The company serves a multitude of market applications including manufacturing facilities, warehouses, educational facilities, commercial buildings, lodging facilities, health care facilities, food processing plants and many more.

“The addition of Dectron is a part of Sterling’s targeted initiative to grow Specified Air by adding complimentary HVAC solutions,” said John Hawkins, a Partner at The Sterling Group. “We look forward to continuing to grow the business organically and through acquisition.”

Sterling acquired Specified Air Solutions (formerly Roberts-Gordon) in 2014 with the intention of growing and expanding the company’s ability to provide niche, high performance HVAC solutions to its customers.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 48 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.4 billion of assets under management.  For further information, please visit www.sterling-group.com.

News
Houston, TX June 20, 2016

The Sterling Group Completes the Simultaneous Acquisitions of North American Industrial Services and Evergreen Industrial Services to Form New Platform

The Sterling Group Completes the Simultaneous Acquisitions of North American Industrial Services and Evergreen Industrial Services to Form New Platform

The Sterling Group, a private equity firm based in Houston, Texas, announced the simultaneous acquisitions of North American Industrial Services (“North American”) and Evergreen Industrial Services (“Evergreen”). The combination of the two businesses will form a new leader in industrial cleaning and related specialty cleaning services.

Headquartered in Ballston Spa, New York, North American serves a diverse set of end markets with a strong geographic presence in the Northeast, Midwest, and Rocky Mountain regions. Headquartered in La Porte, Texas, Evergreen is a leader in the Texas and West Coast petrochemical, refining, and midstream end markets. North American founders, Frank and Tim Zilka, and Evergreen founder Jon Hodges will continue to run their respective businesses and have meaningfully reinvested in the new company.

“Frank and Tim Zilka and Jon Hodges have built exceptional businesses that will be even stronger as one organization,” said Kevin Garland, a Partner at The Sterling Group. “Together, with the addition of several tenured industry executives, we will execute on our collective vision to continue to grow organically and into new markets, offering an expanded ability to serve the new company’s diverse customer base across the United States.”

Mark Neas, former President of Brand Energy Solutions has been named CEO of the new company. “Through the combination of these two leading companies, we will build upon the strong market presence, reputation, and history of growth of both companies,” said Mark Neas. “Our larger combined company, supported by Sterling’s partnership, will provide us access to the necessary resources to support this exciting next phase of growth for our business.” Phil Hawk, former CEO and continuing Executive Chairman of TEAM Inc. (NYSE: TISI) has been named Executive Chairman of the new company.

Sterling has deep experience partnering with management teams in the industrial service sector. Past investments include HydroChem, Hudson and B&G Crane.

 About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 48 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.3 billion of assets under management.  For further information, please visit www.sterling-group.com.

News
Houston, TX June 7, 2016

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires FleetMind

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires FleetMind

The Sterling Group, a private equity firm based in Houston, Texas, announced that its portfolio company, Safe Fleet, has completed the acquisition of FleetMind Solutions, Inc. (“FleetMind”). This marks Safe Fleet’s seventh acquisition during Sterling’s ownership.  Safe Fleet is a leading supplier of safety components for fleet vehicles.

Based in Montreal, Canada, FleetMind delivers the waste industry’s leading “smart truck” solution – onboard computing (OBC) systems that enable  waste and recycling fleets to link their drivers and vehicles to business operations in real-time to ensure improved safety, productivity, sustainability and customer service. FleetMind solutions have been successfully installed in thousands of refuse collection vehicles across North America, providing unprecedented real-time information to drivers and dispatchers about a truck’s load-weight, route status, service completion, vehicular telemetry, driver activities and more. As a result, FleetMind-powered fleets enjoy optimized safety, total visibility into route progress, greater driver accountability, improved customer service, and vastly improved fuel efficiencies.

“We are excited to welcome FleetMind into the Safe Fleet family.  This acquisition supports our vision to build the leading global provider of safety solutions for fleet vehicles,” said John R. Knox, President & CEO of Safe Fleet.  “The addition of FleetMind expands Safe Fleet’s growing position in fleet management software and hardware for specialty fleet vehicles.  The FleetMind product line is complementary to Safe Fleet’s existing fleet management products and expands Safe Fleet’s penetration in the waste and recycling market.”

FleetMind is the company’s fourth acquisition in the video and telematics sector, an area of rapid growth for Safe Fleet. “Safe Fleet has doubled in size during its partnership with Sterling, and we remain focused on continued organic and acquisition related growth,” said Gary Rosenthal, a Partner at The Sterling Group. “Additions like FleetMind will further our ability to offer a full suite of safety solutions to our wide range of fleet customers.”

About Safe Fleet

Headquartered in Belton, MO, Safe Fleet owns a portfolio of brands that provide increased functionality and integrated solutions for fleet vehicle manufacturers and operators around the world.  These brands serve five major markets including: emergency services, bus and rail, truck and trailer, work truck, and industrial.  With over 1000 employees, the Safe Fleet family of brands operates almost 600,000 square feet of manufacturing space and targets markets with increasing demand for operator, passenger, and pedestrian safety.  For more information about Safe Fleet please visit www.safefleet.net.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 47 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.3 billion of assets under management.  For further information please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

News
Houston, TX May 20, 2016

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires Rear View Safety

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires Rear View Safety

The Sterling Group, a private equity firm based in Houston, Texas, announced that its portfolio company, Safe Fleet, has completed the acquisition of Rear View Safety (“RVS”). This marks Safe Fleet’s sixth acquisition during Sterling’s ownership. Safe Fleet is a leading supplier of safety components for fleet vehicles.

Based in Brooklyn, New York, Rear View Safety is one of the fastest growing providers of back up camera systems and video-based road safety solutions. Rear View Safety has been instrumental in driving the rapid adoption of video systems in commercial fleets including government fleets, recreational vehicles, truck, trailer, commercial van, construction, emergency, bus and shuttle, agriculture and industrial vehicles. Rear View Safety delivers outstanding quality, value and customer satisfaction.

“We are delighted to welcome the Rear View Safety business into the Safe Fleet family. This acquisition supports our vision to build the leading global provider of safety solutions for fleet vehicles,” said John R. Knox, President and CEO of Safe Fleet. “The addition of Rear View Safety expands Safe Fleet’s leadership position in specialty video products for fleet vehicles in North America and one of the top suppliers worldwide. The RVS product line is complementary to Safe Fleet’s existing video products and positions Safe Fleet as a leading video supplier in all of its fleet end markets.”

“Safe Fleet will continue to pursue strategic growth across the fleet vehicle market, expanding our product offering both organically and through acquisition,” said Gary Rosenthal, a Partner at The Sterling Group. “The company has doubled in size during its partnership with Sterling, and with that has come the expanded ability to serve our important fleet customers.”

About Safe Fleet

Headquartered in Belton, MO, Safe Fleet owns a portfolio of brands that provide increased functionality and integrated solutions for fleet vehicle manufacturers and operators around the world. These brands serve five major markets including: emergency services, bus and rail, truck and trailer, work truck, and industrial. With over 1000 employees, the Safe Fleet family of brands operates almost 600,000 square feet of manufacturing space and targets markets with increasing demand for operator, passenger, and pedestrian safety. For more information about Safe Fleet please visit www.safefleet.net.

 About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 47 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.3 billion of assets under management.  For more information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

News
Houston, TX May 20, 2016

The Sterling Group Announces the Addition of Sreenu Tadavarthy as Senior Vice President of Business Development

The Sterling Group Announces the Addition of Sreenu Tadavarthy as Senior Vice President of Business Development

The Sterling Group, a middle market private equity firm based in Houston, announced the addition of Sreenu Tadavarthy as Senior Vice President of Business Development. Sreenu is based in Chicago and will lead the firm’s origination and deal sourcing activities within the Midwest. He will also support the firm’s broader sourcing effort by assisting in the development of investment themes and working with executives seeking to partner with private equity.

Sreenu possesses over 20 years of M&A and corporate finance experience gained at various investment banks, including Bear, Stearns & Co. Inc., CIBC Oppenheimer Corp. and most recently TTK Partners, LLC, a boutique advisory firm that he co-founded and served as Partner for 10 years. “We welcome Sreenu’s broad base of relationships and transaction experience with industrial companies,” said Jim Apple, Managing Director. “Sreenu’s long tenure advising on corporate divestitures will be a great benefit to Sterling’s targeted sourcing efforts.”

Sterling is currently investing out of its fourth fund with $1.28 billion in commitments. Sterling has completed 23 corporate-carve-outs and has partnered with 14 family businesses since its founding in 1982. Sterling focuses on implementing an operational investment strategy to fundamentally grow and improve North American based industrial businesses.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 47 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has $2.3 billion of assets under management. For further information, please see our website: www.sterling-group.com

Acquisition
Houston, TX January 4, 2016

Dexter Axle, a Portfolio Company of The Sterling Group, Completes the Acquisition of AL-KO Vehicle Technology to Form DexKo Global Inc.

Dexter Axle, a Portfolio Company of The Sterling Group, Completes the Acquisition of AL-KO Vehicle Technology to Form DexKo Global Inc.

The Sterling Group, a middle market private equity firm, today announced that its portfolio company, Dexter Axle, has completed the acquisition of AL-KO VT. The combined companies have been renamed DexKo Global Inc. Today’s acquisition and the formation of DexKo Global Inc. creates the global leader in trailer axle and chassis supply with sales approaching nearly $1 billion.

AL-KO is Dexter’s fourth acquisition under Sterling ownership and its third corporate carve-out. Dexter completed the carve-out from the family-owned AL-KO Kober SE, who will remain a significant shareholder in DexKo Global Inc.

Headquartered in Kötz, Germany, AL-KO VT is the leading European designer and manufacturer of trailer axles, trailer and caravan components, chassis and motorized chassis. The company operates from 20+ locations around the world, including in Europe, Australia, South Africa, and China.

Dexter is the clear market leader in quality, innovation and service in North America. The addition of Dexter’s European counterpart will result in an even stronger organization. The two companies will be able to leverage shared resources and technology, as well as the advantages of a global footprint and significantly expanded scale. Dexter and AL-KO VT will remain under their current brands as market leaders in their respective geographies.

“The addition of AL-KO VT is transformative for Dexter, nearly doubling the company’s size and significantly expanding its company’s geographic footprint,” said Kevin Garland, Partner at The Sterling Group. “We look forward to executing on the operational and strategic opportunities that exist at DexKo Global Inc.”

Fred Bentley, Dexter board member and former CEO of Maxion Wheels, has been named President and CEO of DexKo Global Inc. “I am excited by the opportunity to lead and bring together two world class organizations. We will focus on continuing to lead with great technology and customer service and to expand our strong market leadership positions. It is truly an exciting time for this new organization and we will use our collective strengths for the benefit of all of our customers, employees, suppliers and stakeholders,” said Fred Bentley. Adam Dexter will continue in his current responsibilities as President and CEO of the US-based Dexter.

About The Sterling Group, L.P.

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 46 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has $2.3 billion of assets under management. Current portfolio companies include CST Industries, Express, Saxco International, DexKo Global Inc., Safe Fleet, Specified Air Solutions, American Bath Group and ProcessBarron.

Past performance is no guarantee of future results and all investments are subject to loss.

Announcements
Houston, TX October 2, 2015

The Sterling Group Completes the Sale of Universal Fiber Systems to HIG

The Sterling Group Completes the Sale of Universal Fiber Systems to HIG

The Sterling Group, a private equity firm based in Houston, Texas, announced that it has completed the sale of Universal Fiber Systems (“UFS”) to funds managed by HIG.

Headquartered in Bristol, Virginia, UFS is a leading manufacturer of high-performance, specialty synthetic fibers for niche segments of the commercial carpet, transportation carpet and specialty apparel industries. During Sterling’s ownership, EBITDA has grown by over 70% based on a series of strategic and operational initiatives focused on market share growth, international expansion and cost savings and other margin improvement programs. This growth was accomplished in the face of a difficult market environment for nearly half of the company’s business serving commercial construction customers.

“Sterling was fortunate to partner with such a strong management team, led by CEO Marc Ammen, to drive substantial EBITDA growth in the face of significant headwinds in UFS’ commercial construction end market,” said Kent Wallace, Partner at The Sterling Group. “The team’s tireless execution on a set of strategic and operational initiatives resulted in strong performance in a difficult environment.”

“Sterling’s support was instrumental in achieving new levels of profitability at our company,” said Marc Ammen, CEO. “We look forward to partnering with HIG to continue to grow the business and serve our loyal customers.”

Sterling focuses on implementing its operational investment strategy to fundamentally grow and improve North American based industrial businesses. The Sterling Group was advised on the sale by Baird and Bracewell & Guiliani.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 46 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.4 billion of assets under management. Current portfolio companies include CST Industries, Express, Saxco International, Dexter Axle, Safe Fleet, Specified Air Solutions, American Bath Group and ProcessBarron.

Past performance is no guarantee of future results and all investments are subject to loss.

 

Closing
Houston, TX October 1, 2015

The Sterling Group Completes the Sale of Liqui-Box to Olympus Partners

The Sterling Group Completes the Sale of Liqui-Box to Olympus Partners

The Sterling Group, a private equity firm based in Houston, Texas, announced that it has completed the sale of Liqui-Box to funds managed by Olympus Partners. Sterling acquired the business from DuPont in 2011, its fourth carve-out from DuPont. Sterling has completed 22 corporate carve-outs since its inception in 1982.

Headquartered in Richmond, Virginia, Liqui-Box is a leading global player in the bag-in-box industry. The company designs and supplies liquid packaging systems to meet filling and dispensing needs across numerous end markets, including dairy, beverage, food, and wine.

Sterling engineered the complicated separation of the global Liqui-Box business from DuPont, established a new corporate headquarters, and implemented a wide variety of systems and processes so that the business could operate on a standalone basis. “Sterling’s long history executing corporate carve-outs, the first of which occurred in 1984, was a critical factor in our success with the Liqui-Box investment,” said Greg Elliott, Partner at The Sterling Group.

Sterling and management, led by CEO Ken Swanson, drove substantial organic EBITDA growth of over 45% during Sterling’s ownership period, but just as important established an independent company that will serve as a platform for strong future growth. “The company has improved operations, expanded into new geographies and end markets, and successfully reached new customers. The result is new levels of growth and profitability at Liqui-Box,” said Ken Swanson, CEO.

Sterling focuses on implementing its operational investment strategy to fundamentally grow and improve North American based industrial businesses. The Sterling Group was advised on the sale by Harris Williams & Co, and Willkie Farr & Gallagher.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 46 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.4 billion of assets under management. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, Saxco International, Dexter Axle, Safe Fleet, Specified Air Solutions, American Bath Group and ProcessBarron.

Past performance is no guarantee of future results and all investments are subject to loss.

 

Announcements
Houston, TX July 27, 2015

The Sterling Group Hits $1.25 Billion Hard Cap For Its Fourth Private Equity Fund

The Sterling Group Hits $1.25 Billion Hard Cap For Its Fourth Private Equity Fund

The Sterling Group, a middle market private equity firm based in Houston, Texas, announced it has closed on $1.25 billion in investor commitments for its most recent fund, Sterling Group Partners IV (“Fund IV”). Fund IV was oversubscribed and reached its hard cap in three months. Consistent with Sterling’s successful 33-year history, Fund IV primarily will target corporate carve-outs and family businesses in the industrial sector of the middle market.

The substantial majority of Fund IV’s capital was committed by returning investors. Sterling welcomes a select number of new investors. “The Sterling team is pleased by the significant demand for Fund IV and the strength of our partnership with our investors,” said Kevin Garland, a Partner with The Sterling Group, “Sterling’s hands-on, operational approach to transforming industrial businesses has generated strong returns throughout a variety of market cycles. We intend to continue to execute and improve upon this strategy in Fund IV to produce top tier results for our investors.”

Sterling targets manufacturing, distribution and industrial service businesses generally with $100 million to $500 million in total enterprise value. The firm emphasizes its strong operational approach in partnership with management teams to grow and improve industrial businesses. Sterling’s partner group of Gary Rosenthal, John Hawkins, Kevin Garland, Greg Elliott, Kent Wallace and Brian Henry collectively has 90 years working at Sterling.

Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel. Sterling did not utilize a placement agent.

About The Sterling Group, L.P.

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 46 platform companies and numerous add-on acquisitions for a total transaction value in excess of $10.0 billion. Currently, Sterling has over $2.4 billion of assets under management.  Current portfolio companies include CST Industries, Universal Fiber Systems, Express, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet, Specified Air Solutions, American Bath Group and ProcessBarron.

 

Past performance is no guarantee of future results and all investments are subject to loss.

 

Acquisition
Houston, TX July 1, 2015

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires Hadley’s Transit Mirror Product Line

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires Hadley’s Transit Mirror Product Line

The Sterling Group, a private equity firm based in Houston, Texas, announced that its portfolio company, Safe Fleet Investments LLC, has completed the acquisition of the transit mirror product line for buses, shuttles and coaches from Hadley. This marks Safe Fleet’s fifth acquisition in the last eighteen months, as well as the second corporate carve-out.

Based in Elkhart, Indiana, Hadley’s transit mirrors business is the North American market leader for transit bus mirrors. The combination of Hadley’s transit mirror business with Safe Fleet’s existing transit offerings establishes Safe Fleet as the leading supplier of specialty safety components for transit buses. The acquisition further broadens Safe Fleet’s extensive, safety-oriented product offering, in line with its on-going growth strategy.

We are delighted to welcome the Hadley transit mirrors business into the Safe Fleet family. This acquisition supports our vision to build the leading global provider of safety solutions for fleet vehicles,” said John R. Knox, President & CEO of Safe Fleet.   “Additionally, Safe Fleet is well positioned to offer our full product line of mirrors, hatches, lighting, interiors and video to the school bus, motor coach, RV, shuttle bus, emergency and military vehicle markets.”

“Safe Fleet will continue to pursue strategic growth across the fleet vehicle market, expanding our product offering both organically and through acquisition,” said Brian Henry, a Partner at The Sterling Group. “The company has nearly doubled in size during its eighteen month partnership with Sterling, and with that has come the expanded ability to serve our important fleet customers.”

Sterling utilized its extensive experience executing over 22 corporate carve-outs to assist Safe Fleets’ acquisition of the Hadley transit mirrors product line.

About Safe Fleet

Headquartered in Belton, MO, Safe Fleet owns a portfolio of brands that provide increased functionality and integrated solutions for fleet vehicle manufacturers and operators around the world. These brands serve five major markets including: emergency services, bus and rail, truck and trailer, utility, and industrial. With 1,000 employees, the Safe Fleet family of brands operates almost 600,000 square feet of manufacturing space and targets markets with increasing demand for operator, passenger, and pedestrian safety. For more information about Safe Fleet please visit www.safefleet.net.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 46 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $1.2 billion of assets under management through two active funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet, Specified Air Solutions, American Bath Group and ProcessBarron.

 

Past performance is no guarantee of future results and all investments are subject to loss.

News
Houston, TX May 27, 2015

The Sterling Group Completes the Sale of B&G Crane Service to NCSG Crane

The Sterling Group Completes the Sale of B&G Crane Service to NCSG Crane

The Sterling Group, a private equity firm based in Houston, Texas, announced that it has completed the sale of B&G Crane Service (“B&G”) to NCSG Crane & Heavy Haul Corporation. Sterling acquired the business from the second generation family owners in 2010.

Headquartered in New Orleans, Louisiana, B&G specializes in providing fully operated and maintained crane services, heavy rigging and specialty hauling services in the Louisiana Gulf Coast region. Sterling partnered with the family owners to expand the business into Texas. During Sterling’s ownership, the company’s addressable market expanded by over three times. Resulting revenue and EBITDA growth was substantial.

“The Grilletta family had built a market leading, best-in-class business, and we were fortunate to have the opportunity to partner with them to continue to grow the business in Louisiana while also entering the Texas market,” said Kent Wallace, Partner at The Sterling Group. ”Sterling’s strategic and operational approach to investing in family-owned businesses resulted in strong returns for our partners in B&G.”

Xavier Grilletta, Operational Advisor at B&G commented, “Over the past several years, The Sterling Group has helped support meaningful growth at B&G and we greatly appreciate their sponsorship and support. Our family and the entire B&G team is looking forward to our new partnership with NCSG.”

During its 33 year history, Sterling has partnered with thirteen family- or entrepreneur-owned business owners to fundamentally grow and improve North American based industrial businesses. The Sterling Group was advised on the sale by RBC Capital Markets and Bracewell & Guiliani.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 46 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $1.2 billion of assets under management through two active funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet, Specified Air Solutions, American Bath Group and ProcessBarron.

 

Past performance is no guarantee of future results and all investments are subject to loss.

Acquisition
Houston, TX May 1, 2015

The Sterling Group Completes the Acquisition of ProcessBarron

The Sterling Group Completes the Acquisition of ProcessBarron

The Sterling Group, a private equity firm based in Houston, Texas, announced that it has completed the acquisition of Process Equipment, Inc. (“ProcessBarron”).  Sterling acquired the business from the founding family and management team who are reinvesting alongside Sterling in the new transaction.

Headquartered in Birmingham, Alabama, ProcessBarron is a leading provider of custom turn-key air and material handling solutions to a variety of industries including utility providers and pulp, paperboard, metals and cement producers. The company designs, engineers, fabricates, installs, maintains and repairs equipment critical in powering industrial plants in a variety of end markets.

“Over the past 30 years, ProcessBarron has provided best in class service and equipment to a variety of process industries,” said Ken Nolen, President of ProcessBarron. “The entire ProcessBarron team looks forward to partnering with Sterling to further expand the business.”

Sterling has a long history of partnering with family- and entrepreneur- owned businesses to achieve new levels of financial performance. “ProcessBarron has a unique value proposition in its niche markets,” said Greg Elliott, Partner at The Sterling Group.  “We look forward to working with the ProcessBarron team to continue to broaden their product offerings and geographical reach to provide value to their customers.”

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 45 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $1.2 billion of assets under management through two active funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet, Specified Air Solutions and American Bath Group.

Past performance is no guarantee of future results and all investments are subject to loss.

Acquisition
Houston, TX April 27, 2015

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires Elkhart Brass

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires Elkhart Brass

The Sterling Group, a private equity firm based in Houston, Texas, announced that its portfolio company, Safe Fleet Investments LLC, has completed the acquisition of Elkhart Brass. Safe Fleet is the market leader in providing safety solutions for fleet vehicles. The company designs and manufactures safety-oriented components for the emergency vehicle, truck and trailer, utility vehicle, school bus, and transit bus end markets. Elkhart Brass is Safe Fleet’s third acquisition in the last fifteen months and further broadens Safe Fleet’s extensive, safety-oriented product offering, in line with its on-going growth strategy. Elkhart Brass is an innovative manufacturer of fire fighting and fire protection equipment, including monitors, valves, nozzles, appliances and accessories used in virtually every aspect of fire fighting. “We are excited to welcome Elkhart Brass into the Safe Fleet family. The combination of Elkhart Brass with FRC and Foam Pro will enable us to develop integrated systems of monitors, valves, foam proportioning and electronic controls for the global emergency market,” said John R. Knox, President & CEO of Safe Fleet. “This acquisition supports our vision to build the leading global provider of safety solutions for fleet vehicles.”

Safe Fleet was formed in 2013 through the simultaneous acquisitions of ROM Corporation and Specialty Manufacturing Inc. The growing Safe Fleet portfolio includes ten leading brands serving the safety and productivity needs for a variety of end markets. “Safe Fleet is committed to increasing its ability to provide critical safety products to its loyal customer base,” said Brian Henry of The Sterling Group. Safe Fleet will continue to pursue new acquisition opportunities to expand the products and solutions it offers its fleet vehicle customers.

About Safe Fleet

Headquartered in Belton, MO, Safe Fleet owns a portfolio of brands that provides safety-oriented components and integrated solutions for fleet vehicle manufacturers and operators around the world. These brands serve five major markets including: emergency services, bus and rail, truck and trailer, utility, and industrial. With almost 1000 employees, the Safe Fleet family of brands operates over 500,000 square feet of manufacturing space and targets markets with increasing demand for operator, passenger and pedestrian safety. For more information about Safe Fleet please visit www.safefleetsolutions.com.

About The Sterling Group, L.P.

Founded in 1982, The Sterling Group, L.P. (www.sterling-group.com) is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 45 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $1.1 billion of assets under management. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet, Specified Air Solutions and Aquatic.

Past performance is no guarantee of future results and all investments are subject to loss.

News
January 27, 2015

The Sterling Group Builds a Leading HVAC Manufacturer Under the Name Specified Air Solutions

The Sterling Group Builds a Leading HVAC Manufacturer Under the Name Specified Air Solutions

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced Specified Air Solutions as the new name for its portfolio of HVAC companies. The company previously operated under the name Roberts-Gordon LLC and was acquired by Sterling in July 2014.

Specified Air Solutions is an international manufacturer of semi-custom commercial and industrial HVAC equipment, as well as industrial process and finishing equipment. The Specified Air portfolio includes many well known brands such as Addison, Rapid Engineering, Weather-Rite, Bananza, Phoenix Air Systems, Combat, and Roberts Gordon. Each of these product lines will retain their respective names serving a wide range of market applications including manufacturing facilities, warehouses, educational facilities, commercial buildings, health care facilities, food processing plants, and many more. The products are produced in five manufacturing facilities in the United States and the United Kingdom.

“Specified Air Solutions is a group of leading manufacturers in a number of HVAC applications,” said John Hawkins, Partner at The Sterling Group. “The company will focus on the significant organic growth opportunities that exist and will be the platform for acquisitions into complementary HVAC markets.”

President and CEO of Specified Air Solutions, Charley Brown said, “We have an excellent portfolio of product lines with valuable names in their respective markets, and we plan to meaningfully expand on the company’s prior success. The Specified Air Solutions name more clearly represents both our current identity and future aspirations in the market for semi-custom HVAC solutions.”

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 45 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $1.1 billion of committed capital under management through two funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet, Specified Air Solutions and Aquatic.

Past performance is no guarantee of future results and all investments are subject to loss.

 

Acquisition
Houston, TX September 19, 2014

Safe Fleet, A Portfolio Company of The Sterling Group, Completes the Acquisition of Seon Design Inc.

Safe Fleet, A Portfolio Company of The Sterling Group, Completes the Acquisition of Seon Design Inc.

The Sterling Group, a private equity firm based in Houston, Texas, today announced that its portfolio company, Safe Fleet Holdings LLC, has completed the acquisition of Seon Design Inc. Safe Fleet is a market leader in providing safety solutions for fleet vehicles. The company designs and manufactures safety- and productivity-oriented components for the emergency vehicle, truck and trailer, utility vehicle, school bus, and transit bus end markets. Seon is Safe Fleet’s second acquisition in the last nine months and further broadens Safe Fleet’s extensive product offering, in line with its on-going growth strategy.

Seon is the leading manufacturer of video surveillance and fleet management solutions for school and transit buses. “Seon has developed and built an industry-leading software and hardware platform for mobile surveillance and fleet asset tracking and management,” said John R. Knox, Safe Fleet President and CEO. “The Seon products and capabilities are a great addition to Safe Fleet’s existing portfolio and will help us further serve our fleet vehicle customers.”

Safe Fleet was formed in 2013 through the simultaneous acquisitions of ROM Corporation and Specialty Manufacturing Inc. “Safe Fleet is committed to increasing its ability to provide critical safety products to its loyal customer base,” said Gary Rosenthal, a Partner at The Sterling Group. Safe Fleet will continue to pursue new acquisition opportunities to expand the products and solutions it offers its fleet vehicle customers.

About Safe Fleet

Headquartered in Belton, MO, Safe Fleet is a leading provider of safety solutions for fleet vehicles. Safe Fleet owns a portfolio of brands that help its customers improve the safety and efficiency of their fleets, operators, passengers and pedestrians. These fleets include: emergency vehicles, refrigerated trucks and trailers, utility vehicles, and bus and rail cars. The Safe Fleet family of brands includes ROM, Bustin, Prime Design, FRC, Specialty Manufacturing (SMI), Pretoria, Transpec, FoamPro, and now Seon. For more information about Safe Fleet and its family of brands, please visit www.safefleetsolutions.com.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies.  Typical enterprise values of these companies range from $100 million to $500 million.  Sterling has sponsored the buyout of 45 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion.  Currently, Sterling has over $1.0 billion of committed capital under management through three funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet, Roberts Gordon and Aquatic.

Past performance is no guarantee of future results and all investments are subject to loss.

 

Acquisition
Houston, TX September 2, 2014

The Sterling Group Completes the Acquisition of Aquatic US Holdings Corp.

The Sterling Group Completes the Acquisition of Aquatic US Holdings Corp.

The Sterling Group, a middle market private equity firm, today announced that its affiliated investment fund has completed the acquisition of Aquatic US Holdings Corp. Aquatic is the third business Sterling has carved-out of the former Tomkins group in a three-year period.

Headquartered in Anaheim, California, Aquatic is a manufacturer of bathtubs and showers primarily used in residential single family and multi-family housing markets. Aquatic produces over 1,700 baths and showers per day from six manufacturing facilities across the United States. The company holds an estimated 20% share of the United States bathware market.

“Sterling’s strategic, operational and financial support of its businesses is a welcome addition to all of us here at Aquatic,” said Stuart Leigh, CEO of Aquatic. “We are thrilled to partner with Sterling as we embark on our next phase of growth.”

During its thirty-two year history, Sterling has sponsored the carve-out of twenty-two businesses from larger corporate parents, including multiple acquisitions from DuPont, British Petroleum and Tomkins. “Aquatic is an industry leader poised to outperform as a stand-alone enterprise with supportive partners,” said Kevin Garland, a Partner at The Sterling Group. “We look forward to achieving new levels of profitability and creating value for all shareholders.”

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 45 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $1.0 billion of assets under management through two active funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet and Roberts-Gordon.

Past performance is no guarantee of future results and all investments are subject to loss.

 

Acquisition
Houston, TX August 7, 2014

Saxco International, a Portfolio Company of The Sterling Group, Acquires Square Peg Packaging and Printing, LLC

Saxco International, a Portfolio Company of The Sterling Group, Acquires Square Peg Packaging and Printing, LLC

The Sterling Group, a middle market private equity firm based in Houston, Texas, announced that its portfolio company, Saxco International has completed the acquisition of Square Peg Packaging and Printing, LLC.

Headquartered in Horsham, Pennsylvania, Saxco is the market leader in the distribution of rigid packaging for the liquor, wine and craft beer industries. Saxco’s partnerships with North American manufacturers and unparalleled sourcing capabilities result in a wide array of customized glass, plastic and closure packaging solutions for their customers. Sterling acquired Saxco in 2011 from Herb and Keith Sachs, members of the founding family. Square Peg is the second add-on acquisition for Saxco in the past year.”

Square Peg designs and supplies a variety of customized packaging and commercial printing materials, as well as providing assembly, kitting, contract packaging, design and prototyping services. Square Peg delivers innovative marketing ideas and specializes in improving brand differentiation and consistency for its clients. Square Peg’s printing, labeling and design offerings will be a meaningful addition to Saxco’s current service offerings to its customers.

“Square Peg’s capabilities will strengthen our strategy for custom packaging and services for the beer and beverage industry,” said Matthew Malenfant, CEO of Saxco. “We look forward to integrating that expertise with the Saxco scale and services as we become increasingly important to our customers’ branding and identity.”

John Hawkins, Partner at The Sterling Group said, “The Square Peg addition will be valuable as Saxco continues to enhance its products and services that meet our customers’ unique packaging needs. Saxco is well positioned to enter a new period of expansion and growth.”

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 44 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has $1.0 billion of assets under management through two active funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet and Roberts-Gordon.

Past performance is no guarantee of future results and all investments are subject to loss.

 

Acquisition
Houston, TX July 2, 2014

The Sterling Group Completes the Acquisition of Roberts-Gordon LLC

The Sterling Group Completes the Acquisition of Roberts-Gordon LLC

The Sterling Group, a middle market private equity firm based in Houston, Texas, announced that its affiliated investment fund, Sterling Group Partners III, L.P., completed the acquisition of Roberts-Gordon LLC (“Roberts-Gordon”) on July 1, 2014.

Headquartered in Buffalo, New York, Roberts-Gordon designs and manufactures specialty commercial and industrial HVAC equipment as well as industrial process and finishing equipment. The company’s diverse product offering is utilized in a range of niche market applications, primarily in manufacturing facilities, warehouses, vehicle service shops, educational facilities, commercial offices, energy terminals, chicken houses and retail establishments. Roberts-Gordon operates six manufacturing facilities in the United States and the United Kingdom.

“Roberts-Gordon is a leading manufacturer in a number of niche HVAC applications,” said John Hawkins, Partner at The Sterling Group. “Sterling’s partnership with the company will focus on the significant organic growth opportunities that exist and will support acquisitions into complementary HVAC markets.”

The Sterling Group has a long history of helping industrial companies reach new levels of financial performance.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 44 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has almost $1.0 billion of committed capital under management through two active funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Liqui-Box, Dexter Axle and Safe Fleet.

Past performance is no guarantee of future results and all investments are subject to loss.

News
Houston, TX December 12, 2013

Safe Fleet, a Portfolio Company of The Sterling Group, Completes the Acquisition of FoamPro from Pentair

Safe Fleet, a Portfolio Company of The Sterling Group, Completes the Acquisition of FoamPro from Pentair

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that its portfolio company, Safe Fleet, has completed the acquisition of FoamPro from Pentair, Ltd. (NYSE: PNR). Sterling formed Safe Fleet in September 2013 through the acquisitions and subsequent combination of ROM Corporation and Specialty Manufacturing, Inc. FoamPro is the first add-on acquisition for Safe Fleet.

Safe Fleet is the leading provider of safety solutions for fleet vehicles. Safe Fleet manufactures products that enhance the safety and productivity of fleet vehicles, including emergency vehicles, refrigerated trucks and trailers, utility vehicles, and school and transit buses. FoamPro designs and manufactures foam pumping systems for fire trucks. FoamPro’s addition complements Safe Fleet’s existing foam product line (sold under the FRC brand) and gives the company a leading position in this end market. Safe Fleet’s foam systems improve the safety, accuracy and cost effectiveness of foam-delivery and are increasingly standard systems on fire trucks.

“Sterling and Safe Fleet management are committed to serving our OEM customers and end users with best in class safety related products,” said Gary Rosenthal, Partner at The Sterling Group. “The addition of the FoamPro line of products to our existing FRC product line deepens our offering and expands our ability to help our customers improve the safety and efficiency of their fleet vehicles.”

Sterling drew upon its extensive experience executing over twenty corporate carve-outs to complete the acquisition from Pentair. Safe Fleet will continue to pursue acquisitions that expand its offering of safety products to both new and existing fleet customers.

About Safe Fleet

Headquartered in Belton, Missouri, Safe Fleet is the leading provider of safety solutions for fleet vehicles. Safe Fleet manufactures products that enhance the safety and productivity of fleet vehicles, including emergency vehicles, refrigerated trucks and trailers, utility vehicles, and school and transit buses. Safe Fleet is a market leader in the majority of its end markets, helping its customers improve the safety and efficiency of their fleets, their operators, passengers and pedestrians. The Safe Fleet family of brands includes ROM, Bustin, Prime Design, FRC, Specialty Manufacturing (SMI), SpecFlor, Pretoria, Transpec and FoamPro.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies.  Typical enterprise values of these companies range from $100 million to $500 million.  Sterling has sponsored the buyout of 43 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion.  Currently, Sterling has almost $1.0 billion of committed capital under management through three funds.  Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Liqui-Box, Dexter Axle and Safe Fleet.

Past performance is no guarantee of future results and all investments are subject to loss.

Acquisition
Houston, TX November 4, 2013

Saxco International, LLC, A Portfolio Company of The Sterling Group, Acquires Synergy Glass & Packaging

Saxco International, LLC, A Portfolio Company of The Sterling Group, Acquires Synergy Glass & Packaging

Saxco International, LLC, the market leader in the distribution of rigid packaging for the liquor, wine and craft beer industry has acquired Synergy Glass & Packaging; it was announced by Matthew Malenfant, chief executive officer of Saxco International. Based in Benicia, California, Synergy and its former affiliates has been distributing glass bottles and packaging solutions to the wine and food industries since 2003.

Saxco’s partnerships with North American glass, plastic and closure manufacturers, as well as its unparalleled global sourcing capabilities, allow it to deliver highly customized solutions to serve its customers’ packaging needs. “Synergy’s customer focused business model has the same culture of high touch service as that of Saxco and we are excited about Synergy being part of the Saxco team,” said Malenfant. “While continuing Synergy’s tradition of providing quality packaging and service, we look forward to using Saxco’s operating scale to add additional value to Synergy’s customers.”

Financial details of this acquisition remain confidential.

 

About Saxco International, LLC

Saxco International, LLC, “Your choice for premium packaging solutions,” has more than 30 years of industry experience, providing a broad range of packaging products and services to the liquor, wine, beer and food industries. In addition to supplying packaging enhancement products, the company’s services include expert consultation from design to development. Saxco is headquartered in suburban Philadelphia, Pennsylvania, with offices in Mountainside, New Jersey; Cincinnati, Ohio; Louisville, Kentucky; Oakland, Fairfield and Napa, California; Vancouver, WA; Tampa, Florida; Hook Hampshire, England and Qingdao, China. Additional details at 215-443-8100, fax 215-443-8370 or the web at www.saxco.com.

Past performance is no guarantee of future results and all investments are subject to loss.

 

Announcements
Houston, TX October 11, 2013

The Sterling Group Completes the Sale of Stackpole International to Crestview Partners

The Sterling Group Completes the Sale of Stackpole International to Crestview Partners

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that it has completed the sale of its portfolio company, Stackpole International to funds managed by Crestview Partners. Sterling had acquired Stackpole through a corporate carve-out from Tomkins in August 2011. Stackpole was an investment in Sterling’s third fund, an $820 million fund raised in 2010. The sale returns a significant portion of all called capital and fees to Fund III. Terms of the transaction were not disclosed.

Headquartered in Ancaster, Ontario, Stackpole is a manufacturer and supplier of highly engineered oil-pumps and powdered metal components to automotive original equipment manufacturers. EBITDA has increased by more than 80% over the last two years, significantly outpacing domestic automobile production growth of about 25%.

“Sterling’s focus on corporate carve-outs and our operationally focused approach to investing in the middle market continue to generate strong returns for our partners, as evidenced by the successful outcome with Stackpole,” said Kent Wallace, Partner at The Sterling Group. “We were pleased to partner with an outstanding management team to guide the company through this period of very exciting growth, offering superior products and execution to an expanded list of customers globally.”

Peter Ballantyne, CEO of Stackpole added, “Sterling’s deep experience transitioning businesses to stand-alone entities and their hands-on approach to partnership helped create great value at the company. Stackpole is well positioned for continued growth based on the progress we’ve made together, and we look forward to the next chapter of growth under our new ownership.”

During its 31 year history, Sterling has completed 22 corporate carve-outs, relying on its operating expertise and its experience executing complicated transactions to fundamentally improve North American based industrial businesses. The Sterling Group and its partner, Current Capital, were advised on the sale by Barclays and Bracewell & Guiliani.

 

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 43 platform companies and numerous add-on acquisitions for a total transaction value of approximately $10.1 billion. Currently, Sterling has about $1.0 billion of committed capital under management through three funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Liqui-Box, Dexter Axle and ROM-SMI (Safe Fleet).

 

Past performance is no guarantee of future results and all investments are subject to loss.

 

Acquisition
Houston, TX September 30, 2013

The Sterling Group Completes the Acquisitions of ROM Corporation and Specialty Manufacturing, Inc.

The Sterling Group Completes the Acquisitions of ROM Corporation and Specialty Manufacturing, Inc.

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that its affiliated investment fund, Sterling Group Partners III, L.P., has completed the acquisition of ROM Corporation (“ROM”) and Specialty Manufacturing, Inc. (“SMI”), combining the businesses through its holding company, Safe Fleet Acquisition Corp. The investment is Sterling’s fifth investment in its third fund, an $820 million fund raised in 2010. The companies were formerly owned but independently operated and financed by Century Park Capital Partners.

Headquartered in Belton, Missouri, the newly combined company provides safety-and productivity-oriented components to the emergency vehicle, truck and trailer, utility vehicle, school bus, and transit bus end markets. Together, ROM and SMI maintain a leading market position across the majority of its niche product lines. The company’s value-added products focus on enhancing worker safety and productivity and are characterized by their durability, reliability, and versatility in usage and application.

“ROM and SMI offer a powerful combination of two market leading businesses that have consistently and reliably provided safety related equipment to fleets in their respective industries for a collective 88 years,” said Gary Rosenthal, Partner at The Sterling Group. “The combination of these two businesses allows us to draw on the strengths of the two legacy organizations. Sterling will work closely with management to further improve operations and take advantage of numerous strategic and acquisition related opportunities.”

“We are pleased to partner with Sterling to bring these two companies together, deepen our product offerings, and expand our ability to serve our customers,” said Joe Uebbing, former CEO of SMI and newly appointed CEO of Safe Fleet. Jeff Hupke, former CEO of ROM and President of Safe Fleet added, “Sterling has a history of successfully integrating numerous middle market acquisitions over many years, and we look forward growing the combined business together.”

The acquisition was financed with equity from Sterling Group Partners III, L.P. First lien financing was arranged by BNP Paribas, and second lien debt was provided by Oaktree Capital Mezzanine.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 43 platform companies and numerous add-on acquisitions for a total transaction value of approximately $10.1 billion. Currently, Sterling has $1.2 billion of committed capital under management through three funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Stackpole International, Liqui-Box, Dexter Axle and ROM-SMI (Safe Fleet).

Past performance is no guarantee of future results and all investments are subject to loss.

News
Houston, TX November 1, 2012

The Sterling Group Completes the Sale of Velcon Filters, LLC to Parker Hannifin Corporation

The Sterling Group Completes the Sale of Velcon Filters, LLC to Parker Hannifin Corporation

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that they have finalized the sale of their portfolio company, Velcon Filters, LLC to Parker Hannifin Corporation (NYSE: PH). Terms of the transaction were not disclosed.

Headquartered in Colorado Springs, Colorado, Velcon is a niche manufacturer of filtration systems, including vessels and replacement cartridges, which meet specific requirements for fluid filtration processes in a variety of domestic and international end-markets.

When Sterling acquired Velcon in 2009 from the founding family, the business was the market leader in the aviation filtration market with a stable base of recurring revenue. Sterling and Velcon together have made three strategic acquisitions over the past three years, expanding Velcon’s end markets beyond aviation into both upstream and downstream oil and gas filtration, as well as other process applications, and diversifying Velcon’s geographical footprint into Europe, the Middle East, Asia and Africa. “Sterling partnered with the Taylor family to capitalize on Velcon’s market leading position in jet fuel filtration, and together we have built a global and diversified industrial fluid filtration company,” said Greg Elliott, Partner at The Sterling Group. Under Sterling’s ownership, Velcon has more than doubled in size.

The combination with Parker’s filtration business is expected to further solidify Velcon’s position as the highest standard in the filtration industry. “This acquisition brings us a leadership position in aviation and industrial fuel filtration, particularly for aviation fuel which requires specialist expertise and certifications,” said Peter Popoff, President of the Filtration Group at Parker. “We are excited about the opportunities to combine our strengths and extend our solutions to more customers, markets and geographies.”

During its 30 year history, The Sterling Group has partnered with 13 different family businesses, bringing its operating expertise and a commitment to partnering with management to improve North American based industrial businesses. The Sterling Group was advised by Robert W. Baird & Co. and Willkie Farr & Gallagher.

 

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 42 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.9 billion. Currently, Sterling has $1.1 billion of committed capital under management through three funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Stackpole International, Liqui-Box and Dexter Axle.

 

About Parker Hannifin Corporation

With annual sales exceeding $13 billion in fiscal year 2012, Parker Hannifin is the world’s leading diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets. The company employs approximately 60,000 people in 48 countries around the world. Parker has increased its annual dividends paid to shareholders for 56 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index. For more information, visit the company’s web site at www.parker.com or its investor information web site at www.phstock.com.

 

Past performance is no guarantee of future results and all investments are subject to a loss.

News
Houston, TX November 1, 2012

The Sterling Group Completes the Acquisition of Dexter Axle from Tomkins Industries, Inc.

The Sterling Group Completes the Acquisition of Dexter Axle from Tomkins Industries, Inc.

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that its affiliated investment fund, Sterling Group Partners III, L.P., has completed the acquisition of the Dexter Axle business from Tomkins Industries, Inc., a subsidiary of Pinafore Holdings B.V. The investment is Sterling’s fourth investment in its third fund, an $820 million fund raised in 2010. Dexter is the second business Sterling has acquired from Tomkins in the last fourteen months.

Dexter is a leading designer and manufacturer of trailer axle, brake, and suspension assemblies and related replacement parts and components for use primarily in the industrial and utility trailer and RV markets in North America. “For over 50 years, Dexter has provided customers with the highest quality axles in the industry,” said Adam Dexter, CEO of Dexter. “The entire team is thrilled by Sterling’s support of our business, our culture, and our commitment to delivering the best customer service and product quality in the trailer running gear market.”

During its thirty year history, Sterling has sponsored the carve-out of 22 businesses from larger corporate parents, including multiple acquisitions from DuPont, British Petroleum and Tomkins. “We are excited about the opportunity to draw on our deep experience with corporate carve-outs to transition Dexter to a stand-alone business,” said Kevin Garland, Partner at The Sterling Group. “We look forward to partnering closely with management to achieve new levels of profitability and create value for all shareholders.”

The acquisition was financed with equity from Sterling Group Partners III, L.P. and several other co-investors. Senior debt financing was arranged by BNP Paribas and mezzanine debt was provided by Hancock Capital Management and Fifth Street Capital.

 

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 42 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.9 billion. Currently, Sterling has $1.1 billion of committed capital under management through three funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Stackpole International, Liqui-Box and Dexter Axle.

 

Past performance is no guarantee of future results and all investments are subject to a loss.

News
Houston, TX October 5, 2012

The Sterling Group to Sell Velcon Filters, LLC to Parker Hannifin Corporation

The Sterling Group to Sell Velcon Filters, LLC to Parker Hannifin Corporation

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that it has entered into a definitive agreement to sell its portfolio company, Velcon Filters, LLC to Parker Hannifin Corporation (NYSE: PH). Terms of the transaction were not disclosed.

Headquartered in Colorado Springs, Colorado, Velcon is a niche manufacturer of filtration systems, including vessels and replacement cartridges, which meet specific requirements for fluid filtration processes in a variety of domestic and international end-markets. When Sterling acquired the business from the founding family in 2009, the company was the domestic leader in the aviation fuel filtration industry. Today, Velcon has a global platform servicing the aviation, industrial and oil and gas filtration markets in over 150 countries. Sterling identified Velcon as a buy-and-build platform and completed three strategic acquisitions in three years. The business more than doubled in size during Sterling’s ownership.

The transaction is expected to close in the fourth quarter of 2012 and is subject to regulatory approval. The Sterling Group was advised by Robert W. Baird & Co. and Willkie Farr & Gallagher.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 41 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.5 billion. Currently, Sterling has $1.2 billion of committed capital under management through three funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Velcon Filters, Express, B&G Crane, Saxco International, Stackpole International and Liqui-Box.

About Parker Hannifin Corporation

With annual sales exceeding $13 billion in fiscal year 2012, Parker Hannifin is the world’s leading diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets. The company employs approximately 60,000 people in 48 countries around the world. Parker has increased its annual dividends paid to shareholders for 56 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index. For more information, visit the company’s web site at www.parker.com or its investor information web site at www.phstock.com.

Past performance is no guarantee of future results and all investments are subject to loss.

News
Houston, TX September 27, 2012

The Sterling Group to Acquire Dexter Axle from Tomkins Industries Inc.

The Sterling Group to Acquire Dexter Axle from Tomkins Industries Inc.

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that its affiliated investment fund, Sterling Group Partners III, L.P., entered into a definitive purchase agreement to acquire all of the equity interests that comprise the Dexter Axle business from Tomkins Industries, Inc., a subsidiary of Pinafore Holdings B.V.

The Dexter Axle business manufactures trailer axle, brake and suspension assemblies and related replacement parts and components. The closing of the transaction is subject to customary conditions and is expected to occur in the last quarter of 2012.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 41 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.5 billion. Currently, Sterling has $1.2 billion of committed capital under management through three funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Velcon Filters, Express, B&G Crane, Saxco International, Stackpole International and Liqui-Box. Upon closing this transaction, Sterling will have completed 22 corporate carve-outs in its 30 year history.

 

 

 

Closing
Houston, TX August 7, 2012

Stackpole International, a Portfolio Company of The Sterling Group, Completes Refinancing

Stackpole International, a Portfolio Company of The Sterling Group, Completes Refinancing

The Sterling Group announced today that its portfolio company, Stackpole International (“Stackpole”) completed the refinancing of its outstanding debt on August 2, 2012.  Stackpole is a manufacturer and sole source supplier of highly-engineered oil pumps and powdered metal components to automotive original equipment manufacturers.  Sterling acquired Stackpole on August 2, 2011 from Gates Canada, a subsidiary of Tomkins.

 Stackpole raised $165 million of senior financing from a syndicate of banks, arranged by RBC and CIBC.  The proceeds of the refinancing were used to repay existing outstanding debt, including eliminating all mezzanine debt from the original transaction. The refinancing will result in a reduction of Stackpole’s annual debt interest costs by over 50%.

 Under Sterling’s ownership, Stackpole has experienced considerable growth and has expanded both its customer base and geographic end markets. This refinancing provides additional financial flexibility for Stackpole to continue to implement its growth strategy.

About Stackpole International

 Headquartered in Ancaster, Ontario, Stackpole is a market leader in both oil pumps and powdered metals and has established a long-standing track record with fifty-five years of manufacturing expertise. Stackpole’s products are specified into powertrain (engine and transmission) platforms that have an average lifecycle of ten to fifteen years. These platforms underpin approximately 400+ vehicle nameplates. Stackpole currently has twelve manufacturing facilities and technical centers in North America, Europe, China and Korea.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 41 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.5 billion. Currently, Sterling has $1.2 billion of committed capital under management through three funds. Current portfolio companies include North American Energy Partners, CST Industries, Universal Fiber Systems, Velcon Filters, Express, B&G Crane, Saxco International, Stackpole International and Liqui-Box.

News
Houston, TX May 31, 2012

The Sterling Group Completes the Sale of Roofing Supply Group, LLC

The Sterling Group Completes the Sale of Roofing Supply Group, LLC

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that they have finalized the sale of Roofing Supply Group, LLC (“RSG”) to funds managed by Clayton, Dubilier & Rice, LLC (“CD&R”).  RSG is the fourth largest distributor of roofing supplies and related materials in the United States, with 59 locations in 24 states.  Terms of the transaction were not disclosed.

RSG has grown significantly in recent years, driven by strategic and operational initiatives undertaken by The Sterling Group in partnership with management. Since Sterling acquired RSG from its founders in 2006, EBITDA increased by more than 50% despite a record decline in housing starts that has yet to rebound.

“The investment in RSG exemplifies Sterling’s investment philosophy and operational approach,” said Kevin Garland, a Partner at The Sterling Group. “For thirty years, Sterling has focused on partnering with management to drive strategic initiatives and grow businesses for all shareholders, regardless of market cycles. We have worked closely with management to make dramatic improvements to RSG’s procurement, sales, pricing and to expand the company’s network into strategic markets.  The result has been what we believe to be outstanding financial performance in the face of difficult end market conditions.”

Mike Farrell, CEO of RSG, said, “RSG has always had an excellent culture and best in class customer service efforts, but it was the resources and partnership with the Sterling team that enabled us to achieve new levels of success with the business.  We look forward to continued growth under our new ownership.”

RSG was a portfolio company of Sterling Group Partners II, a fund controlled by The Sterling Group, L.P.

About The Sterling Group, L.P.

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 41 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.5 billion. Currently, Sterling has $1.2 billion of committed capital under management. Current portfolio companies include North American Energy Partners, CST Industries, Universal Fiber Systems, Velcon Filters, Express, B&G Crane Service, Saxco International, Stackpole International and Liqui-Box.

 About Roofing Supply Group

Founded in 1981 and based in Dallas, TX, Roofing Supply Group is one of the largest wholesale distributors of roofing supplies and related materials in the United States.  Through its network of 59 branches in 24 states, RSG provides one-step distribution services from roofing product manufacturers to roofing contractors and homebuilders.  Each branch carries a complete line of roofing products for residential and commercial roofing, including composition asphalt shingles, underlayment, and associated ancillary products.  For more information, please visit http://www.roofingsupplygroup.com.

Past performance is no guarantee of future results and all investments are subject to loss.

Acquisition
Colorado Springs, CO May 1, 2012

Velcon Filters, LLC, a Portfolio Company of The Sterling Group, Completes Acquisition of Warner Lewis GmbH

Velcon Filters, LLC, a Portfolio Company of The Sterling Group, Completes Acquisition of Warner Lewis GmbH

Velcon Filters, LLC, a  manufacturer of industrial filtration systems, today announced that it has acquired Warner Lewis GmbH. Velcon is a portfolio company of The Sterling Group, a middle market private equity firm based in Houston, Texas, and was acquired in 2009 as a platform to execute a buy-and-build strategy.

Headquartered in Kelsterbach, Germany with locations in Phillipsburg, Germany; Farnborough, UK; Paris, France; and Dubai, UAE; Warner Lewis offers aircraft refueling solutions to customers in Europe, the Middle East and Africa (“EMEA”).  Warner Lewis has been a strategic business partner of Velcon for over 40 years distributing Velcon’s line of products, in addition to manufacturing its own standard or custom vessels, pit-boxes and ground fueling products. The acquisition of Warner Lewis represents an opportunity for Velcon to directly serve customers in EMEA.

Velcon manufactures filtration systems, primarily for the jet fuel market, including vessels and replacement cartridges which meet specific requirements for fluid filtration processes in a variety of domestic and international end-markets.  Keith McAslan, President of Velcon said, “Since 1969, Warner Lewis has been the recognized leader for aircraft fueling components and solutions in EMEA and has been Velcon’s exclusive distributor in that region. As Velcon looks toward its 60th anniversary in 2013, we are pleased to join with Warner Lewis and directly provide a broader range of products and solutions to our aviation customers in the Americas and EMEA.”

This is the third acquisition for Velcon in the past three years. Velcon acquired Chemflo in late 2009 to expand its product offering into the energy markets, and in 2010 acquired Twin Filter B.V. in the Netherlands to diversify and grow its business in the oil, liquid and air filtration markets.  “We are excited to expand in the aviation fuel market where Velcon is a market leader in filtration and Warner Lewis is a trusted provider of filtration and refueling solutions,” Greg Elliott, Partner of The Sterling Group and Chairman of the Board of Velcon said. “Velcon’s acquisitions over the past three years have strengthened the global footprint, scale and organic growth opportunities of the business, and we expect that Warner Lewis will have a significant impact as well.” The acquisition was financed with debt from BNP Paribas, Amegy Bank of Texas and BBVA Compass.

About Velcon Filters, LLC

Velcon Filters, LLC, headquartered in Colorado Springs, Colorado, is a niche manufacturer of filtration systems, including vessels and replacement cartridges, that meet specific requirements for fluid filtration processes in a variety of domestic and international end-markets. The company’s aviation division, through Velcon branded product lines, is a global leader in the filtration process for aviation fuel delivery, engineering and manufacturing products that filter, purify and remove water and containments from aviation fuel along the transport chain from the refinery to the aircraft.  Velcon’s process division, through its Twin Filter brand, engineers, manufactures and markets equipment and replacement cartridges for the oil, liquid and air filtration markets in Europe, Asia, North America and other international markets.

About The Sterling Group, L.P.

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 41 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.5 billion. Currently, Sterling has $1.2 billion of committed capital under management through three funds. Current portfolio companies include North American Energy Partners, CST Industries, Roofing Supply Group, Universal Fiber Systems, Velcon Filters, Express, B&G Crane Service, Saxco International, Stackpole International and Liqui-Box.

Franny Jones
713.341.5756
fjones@sterling-group.com
www.sterling-group.com

Acquisition
Houston, TX December 30, 2011

The Sterling Group Acquires Liqui-Box from Dupont

The Sterling Group Acquires Liqui-Box from Dupont

The Sterling Group (“Sterling”), a Houston based private equity investment firm, today announced that its affiliated investment fund, Sterling Group Partners III, L.P., has completed the acquisition of the Liqui-Box Corporation (“Liqui-Box”) from DuPont. The acquisition is Sterling’s third investment in its third fund, an $820 million fund raised in 2010. Liqui-Box is the twenty-first corporate carve-out in Sterling’s thirty year history and the fourth business Sterling has acquired from DuPont.

Headquartered in Worthington, Ohio, Liqui-Box is a leading supplier of bag-in-box flexible packaging to the global dairy, beverage and bulk food markets. Bag-in-box packaging is primarily used in the foodservice industry to package dairy mix for milkshakes and coffee drinks, fountain beverage syrup and pumpable liquid foods such as food concentrates and sauces. Liqui-Box also produces pouches and rigid plastic water bottles. The company’s product offering includes consumables, such as fitmented bags and pouch films, as well as filling machines.

“The entire Liqui-Box team is energized to partner with Sterling who has a proven track record of successfully transitioning unique, specialty businesses like ours to more nimble, stand alone companies and equipping them for future growth. We look forward to executing on a number of initiatives to expand our business and enhance our delivery of top quality products to our customers,” said Roszann Graham, CEO of Liqui-Box.

Greg Elliott, a Partner of Sterling noted, “Roszann and her team have done an exceptional job positioning Liqui-Box as a leading provider of bag-in-box packaging solutions. Over the past several years, Liqui-Box has streamlined its operations to focus on its core products. Our focus now is to expand our global footprint, invest in technology and expand our offering of solutions to our customers.”

The acquisition was financed with equity from Sterling Group Partners III, L.P. Senior debt financing was provided by BNP Paribas and BMO, and mezzanine debt was provided by Oaktree Capital Management.

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 41 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.5 billion. Currently, Sterling has $1.3 billion of committed capital under management through three funds. Current portfolio companies include North American Energy Partners, CST Industries, Roofing Supply Group, Universal Fiber Systems, Velcon Filters, Express, B&G Crane, Saxco International and Stackpole International. The Sterling Group has a proven track record with corporate carve-outs, as over half of its transactions over the last thirty years have been the purchases of businesses from large corporations.

For additional information, please contact:
The Sterling Group, L.P.
Franny Jones
(713) 341-5756
fjones@sterling-group.com

Acquisition
Dallas, TX December 30, 2011

Roofing Supply Group, LLC Acquires Intermountain Supply, Inc.

Roofing Supply Group, LLC Acquires Intermountain Supply, Inc.

Roofing Supply Group, LLC (“RSG”), a national leader in the wholesale distribution of roofing supplies and related materials, today announced that it has acquired Intermountain Supply, Inc. (“IMS”). RSG is a portfolio company of The Sterling Group, L.P.

With locations in Seattle and Spokane, Washington, IMS is a leading distributor of residential and commercial roofing supplies and other building materials in the region. “Founded in 1995, Intermountain Supply has established itself as the leading roofing supply distributor in the state of Washington and throughout the Northwestern US and has an excellent reputation,” said Mike Farrell, President and CEO of RSG. “We had identified Washington as an attractive market for RSG’s entry in 2011, and we are thrilled to partner with the IMS team to extend our footprint into this new geographic region.”

RSG operates a strategic distribution network of 58 branches across 23 states, focused exclusively on residential and commercial roofing products and accessories. The IMS acquisition further strengthens RSG’s geographic position and ability to serve its customer base.

About Roofing Supply Group
Roofing Supply Group, headquartered in Dallas, Texas, is one of the largest wholesale distributors of roofing supplies and related materials in the United States. Through its network of 58 branches in 23 states, RSG provides one-step distribution services from roofing product manufacturers to roofing contractors and homebuilders. Each branch carries a complete line of roofing products for residential and commercial roofing, including composition asphalt shingles, underlayment, and associated ancillary products.

For additional information, please contact:
Roofing Supply Group, LLC
Paul Drobnitch
(214) 956-5184
pdrobnitch@rsgroof.com

For additional information, please contact:
The Sterling Group, L.P.
Franny Jones
(713) 341-5756
fjones@sterling-group.com

Accolades
Houston, TX November 14, 2011

Sterling Named to 2011 List of Top 20 Private Equity Firms

Sterling Named to 2011 List of Top 20 Private Equity Firms

The 2011 HEC-DowJones Private Equity Performance Ranking lists the world’s Top PE firms in terms of aggregate performance based on all funds raised between 1998 and 2007. This ranking answers the question: “Which firm(s) generated the best performance for their investors over the past years?” The ranking draws on a comprehensive set of data on PE fund performance provided by DowJones and directly from PE Firms and uses a unique methodology to calculate the aggregate performance of a PE firm based on difference performance measures for all the funds managed by this firm. The method is able to aggregate performance across vintage years and considers relative and absolute returns. In total, we analyzed performance data from 427 PE firms and the 950 funds they raised between 1998 and 2007 with an aggregate equity volume of $1300bn.

Download the full article

  1. Waterland
  2. Friedman Fleischer & Lowe
  3. Platinum Equity
  4. Hellman & Friedman
  5. TPG
  6. Astorg
  7. PAI Partners
  8. Rhone Capital
  9. Nordic Capital
  10. Onex Corporation
  11. The Sterling Group
  12. Towerbrook Capital Partners
  13. GTCR Golder Rauner
  14. Axa Private Equity
  15. Gilde Buy Out Partners
  16. BC Partners
  17. Barclays Private Equity
  18. Bain Capital
  19. The Riverside Company
  20. Apollo Management

 

Disclaimer: The Sterling Group, L.P. has not sought to independently verify information obtained from the sources used by HEC-DowJones to compile the rankings contained in this article. In addition, the methodology used by HEC-DowJones is subject to inherent limitations due to the confidential nature of the private equity industry, different vintage years, strategies or investment objectives of private equity firms and different performance measures used by such firms. There may be certain other limitations in the comparison of The Sterling Group, L.P. with other private equity firms in the ranking, with respect to its performance that it may not be aware of. The Sterling Group, L.P. makes no representations or warranties as to accuracy, completeness or reliability of information contained in this article.

Acquisition
Houston, TX August 2, 2011

The Sterling Group Acquires Stackpole International from Gates Canada

The Sterling Group Acquires Stackpole International from Gates Canada

The Sterling Group (“Sterling”), a Houston based private equity investment firm, today announced that its affiliated investment fund, Sterling Group Partners III, L.P., has completed the acquisition of the Stackpole International (“Stackpole”) business from Gates Canada (a subsidiary of Pinafore Holdings PV). The acquisition is Sterling’s second investment in its third fund, an $820 million fund raised in 2010, and is the twentieth corporate carve-out in its twenty-nine year history.

The acquisition was financed with equity from Sterling Group Partners III, L.P., Current Capital LLC and several other co-investors. Senior debt financing was provided by RBC Capital Markets, BNP Paribas and UBS and mezzanine debt was provided by Hancock Capital Management, Fifth Street and Global Leveraged Capital.

Stackpole was founded in 1952 and was acquired by Gates in 2003. Headquartered in Ancaster, Ontario, Stackpole is a manufacturer and sole source supplier of highly-engineered oil pumps and powdered metal components to automotive original equipment manufacturers. Stackpole is a market leader in both oil pumps and powdered metals and has established a long-standing track record with fifty-five years of manufacturing expertise. Stackpole’s products are specified into powertrain (engine and transmission) platforms that have an average lifecycle of ten to fifteen years. These platforms underpin approximately 400+ vehicle nameplates. Stackpole currently has twelve manufacturing facilities and technical centers in North America, Europe, China and Korea.

“The entire management team is thrilled to partner with Sterling to return Stackpole to a standalone business. Over the next few years, our business will have the opportunity to expand in North America and significantly increase its presence in Europe and Asia. We feel that Sterling’s historical experience in effectively guiding the growth of manufacturing businesses such as ours, as well as their access to capital to support our growth needs, will be tremendous assets for our company,” said Peter Ballantyne, President and CEO of Stackpole.

Kent Wallace, a Partner of Sterling noted, “We are very excited to have the opportunity to work with Pete, the rest of the Stackpole management team and the employees to continue to expand the company’s global manufacturing platform. We are confident the company will continue to build on its outstanding reputation for consistently manufacturing and delivering critical components.”

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 40 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.4 billion. Currently, Sterling has $1.3 billion of committed capital under management through three funds. Current portfolio companies include North American Energy Partners, CST Industries, Roofing Supply Group, Universal Fiber Systems, Velcon Filters, Express, B&G Crane and Saxco International. The Sterling Group has a proven track record with corporate carve-outs as half of its transactions over the last thirty years have been the purchases of businesses from large corporations.

For additional information, please contact:
The Sterling Group, L.P.
Franny McKay Jones
(713) 341-5756
fjones@sterling-group.com

Acquisition
New Orleans, LA June 29, 2011

B&G Crane Service Acquires the Texas Assets of Ray Anthony International

B&G Crane Service Acquires the Texas Assets of Ray Anthony International

B&G Crane Service, LLC (“B&G”), provider of operated and maintained mobile crane services, heavy rigging and specialty hauling services today announced that it has completed the acquisition of substantially all of the Texas-based assets of Ray Anthony International, LLC (“RAI”). B&G is a portfolio company of an affiliate of The Sterling Group, L.P. (“Sterling”), a Houston-based private equity investment firm.

Headquartered in New Orleans, Louisiana, B&G has a fleet of over 100 mobile cranes ranging from 6 to 825 tons in capacity and a truck fleet of over 50 vehicles. The company’s crane rental fleet consists primarily of mobile all terrain, hydraulic truck, lattice boom crawler and tough terrain cranes. The specialty hauling division includes modular platform trailers, gantry lift systems and specialty truck hauling capabilities. B&G’s primary market consists of petrochemical, refining and industrial customers within a 150 mile radius of the company’s New Orleans and Baton Rouge facilities.

The acquisition of the majority of RAI’s Texas fleet, consisting of 23 cranes (4 – 240 tons in capacity) and the accompanying trucks, trailers and other assets, represents B&G’s initial expansion into the Texas Gulf Coast market. B&G expects to transfer additional cranes from its Louisiana-based fleet and also anticipates buying several new cranes to service the Texas market. “The addition of RAI’s Baytown and Beaumont, Texas locations and corresponding fleets will enable B&G to better serve our customer base across an expanded geographical area,” said B&G’s CEO Xavier J. Grilletta Jr., whose father founded the company in 1946. “We are excited to partner with the RAI employees to provide the same high quality, safe and customized service to our clients in Texas that we have been providing in the Louisiana Gulf Coast market for the past 60 years.”

“The acquisition of the RAI assets accelerates B&G’s entrance into the Texas Gulf Coast market and positions the company to capitalize on the area’s myriad petrochemical, refining and heavy industrial facilities,” noted Kent Wallace, a Partner at Sterling.

About B&G Crane Service, LLC
B&G Crane Service, LLC has been locally operated in New Orleans by the Grilletta family since 1946. B&G has played an instrumental role in the support of the construction industry of the city and the surrounding region. Operating for over 60 years, B&G now has three generations involved in management and daily operations. With corporate headquarters located in New Orleans and branch offices in Metairie and Baton Rouge, its service area is concentrated in southeastern Louisiana, however B&G’s mobile fleet can service its customers throughout the southeastern United States. Staffed by a highly skilled work force, B&G operates with a continuously updated fleet of over 100 cranes ranging from 4 ton to 825 ton capacities and a supporting truck fleet in excess of 50 vehicles. B&G is dedicated to maintaining its position as an industry front-runner in providing the highest quality, most dependable, safest and most economical service in crane rental, heavy rigging and specialty hauling.

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 39 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.0 billion. Currently, Sterling has $1.3 billion of committed capital under management through three funds. Current portfolio companies include North American Energy Partners, CST Industries, Roofing Supply Group, Universal Fiber Systems, Velcon Filters, Express, B&G and Saxco International.

For additional information, please contact:
The Sterling Group, L.P.
Kent Wallace
(713) 341-5754
kwallace@sterling-group.com

Acquisition
Dallas, TX April 15, 2011

Roofing Supply Group LLC, a Portfolio Company of The Sterling Group, Announces Acquisition of Construction Resource, Inc.

Roofing Supply Group LLC, a Portfolio Company of The Sterling Group, Announces Acquisition of Construction Resource, Inc.

Roofing Supply Group, LLC (“RSG”), a national leader in the wholesale distribution of roofing supplies and related materials, today announced that it has acquired Construction Resource, Inc. (“CRI”). Operating throughout Northern California, with locations in Oakland and Sacramento, CRI has established itself as a respected market leader in commercial roofing and waterproofing materials and as a preferred distributor of Firestone roofing materials and CETCO waterproofing over the last two decades. CRI’s success was built on delivering superior customer service to commercial roofing contractors, project owners and architects across the region.

“Construction Resource, Inc. has a long-standing reputation as a leading distributor of quality commercial roofing and waterproofing materials in Northern California,” said Mike Farrell, President and CEO of RSG. “We are extremely pleased that Mark Newman elected to transition his successful distributor business to RSG. We look forward to strengthening our commercial presence in the region, building on our relationship with Firestone and Mark as he continues to work as Firestone’s agent representative in Northern California, and learning from CRI’s team of commercial roofing experts.”

RSG operates a strategic distribution network of 56 branches across 22 states, focused exclusively on residential and commercial roofing products and accessories. The CRI acquisition further strengthens RSG’s geographic position and ability to serve its customer base.

Roofing Supply Group is a portfolio company of The Sterling Group, L.P.

About Roofing Supply Group
Roofing Supply Group headquartered in Dallas, Texas, is one of the largest wholesale distributors of roofing supplies and related materials in the United States. Through its network of 56 branches in 22 states, RSG provides one-step distribution services from roofing product manufacturers to roofing contractors and homebuilders. Each branch carries a complete line of roofing products for residential and commercial roofing, including composition asphalt shingles, underlayment, and associated ancillary products.

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 39 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.0 billion. Currently, Sterling has $1.3 billion of committed capital under management through three funds. Current portfolio companies include North American Energy Partners, CST Industries, Roofing Supply Group, Universal Fiber Systems, Velcon Filters, Express, B&G Crane Service and Saxco International.

Acquisition
Colorado Springs, CO March 31, 2011

Velcon Filters, LLC, a Portfolio Company of The Sterling Group, Completes Acquisition of Twin Filters B.V.

Velcon Filters, LLC, a Portfolio Company of The Sterling Group, Completes Acquisition of Twin Filters B.V.

Velcon Filters, LLC, a manufacturer of industrial filtration systems, today announced that it has acquired Twin Filters B.V. Velcon is a portfolio company of The Sterling Group and was acquired in 2009 as a platform to execute a buy-and-build strategy.

With headquarters in The Netherlands, Twin designs, engineers and manufactures filtration equipment and replacement cartridges for the oil, liquid and air filtration markets in Europe, Asia, North America and other international markets. Wijbrand Schouten, the founding CEO who will remain with Twin in his current role, commented, “Velcon is the clear leader in the jet fuel market, and we are pleased to combine our organizations to continue to deliver top quality products and solutions to our collective customer bases globally.”

Velcon manufactures filtration systems, including vessels and replacement cartridges, which meet specific requirements for fluid filtration processes in a variety of domestic and international end-markets, primarily the jet fuel market. Dave Taylor, President and CEO of Velcon, said, “Since 1985, Twin has provided the highest quality filtration devices for the oil, liquid and air filtration markets. We are pleased to partner with Wijbrand and his team at Twin and to provide a broader range of products and solutions to our customers.”

The acquisition of Twin represents an expansion into new end-markets and geographies. “Velcon acquired Chemflo in late 2009 to expand our product offering into the downstream energy markets, and now Twin provides significant growth opportunities in the upstream markets,” Greg Elliott, Partner of The Sterling Group said. “We are excited to capitalize on the synergies that Velcon and Twin’s collaboration will provide.” The acquisition was financed with equity from Sterling Group Partners II, L.P. and debt financing from BNP Paribas, Amegy Bank of Texas and D.E. Shaw.

About Velcon Filters, LLC
Velcon, headquartered in Colorado Springs, CO, manufactures housing vessels and replacement cartridges used in the filtration of industrial fluids. The company is a global leader in the filtration process for jet fuel delivery, manufacturing products that filter, purify and remove water from jet fuel. End users of Velcon’s products primarily include airports, contracted fuel providers, FBO operators, militaries and pipeline operators. Velcon Process manufactures filtration products for commercial and industrial diesel consumers, refineries, petrochemical facilities and utilities.

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 39 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.0 billion. Currently, Sterling has $1.3 billion of committed capital under management through three funds. Current portfolio companies include North American Energy Partners, CST Industries, Roofing Supply Group, Universal Fiber Systems, Velcon Filters, Express, B&G Crane Service and Saxco International.

Acquisition
Houston, TX December 22, 2010

The Sterling Group Completes Acquisition of Saxco International

The Sterling Group Completes Acquisition of Saxco International

The Sterling Group (“Sterling”), a Houston-based private equity investment firm, today announced that it has completed the acquisition of a substantial equity interest in Saxco International (“Saxco”). The acquisition was financed with equity from Sterling Group Partners III, L.P. and debt financing from BNP Paribas and Oaktree CapitalManagement.

Saxco, headquartered in Horsham, PA, is the leading value-added distributor of rigid packaging products for the wine, spirits and craft beer markets in North America. With an operating history that spans more than seven decades, the company distributes glass bottles and other packaging products to a customer base of more than 2,000 wineries, distillers, brewers and specialty food manufacturers. The company has a broad network of sales offices and distribution facilities across the US, Canada and select international locations.

Saxco was founded in 1936 by members of the Sachs family. Brothers Keith and Herb Sachs will remain in their current management roles of CEO and President, respectively, and will continue to be significant owners in partnership with Sterling. “Sterling’s investment in Saxco is the start of an exciting new stage in our company’s 70- plus year history,” said Keith Sachs of the partnership. “We will draw upon Sterling’s expertise as we continue to deliver innovation, quality and superior customer responsiveness in the supply of rigid containers.”

“Over the past 74 years, the Sachs family has emerged as the leader in the distribution of packaging for alcoholic beverages,” said John Hawkins, a Partner of The Sterling Group. “We are excited about the opportunity to work with the Sachs brothers and the rest of the management team to continue to build the business and expand the product offering.”

Sterling has a long history of investing in distribution and packaging businesses and brings a proven track record in these sectors. Recent investments include Exopack and Roofing Supply Group.

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 39 platform companies and numerous add-on acquisitions for a total transaction value greater that $9.0 billion. Currently, Sterling has $1.3 billion of committed capital under management through three funds. Current portfolio companies include North American Energy Partners, CST Industries, Roofing Supply Group, Universal Fiber Systems, Velcon Filters, CCCG (“Express”) and B&G Crane Services.

Accolades
Houston, TX December 6, 2010

Sterling named as one of Top 20 General Partners of 2010 by Dow Jones Private Equity News

Sterling named as one of Top 20 General Partners of 2010 by Dow Jones Private Equity News

http://www.sterling-group.com/images_news/dow-jones-1012.pdf

Acquisition
Houston, TX July 30, 2010

The Sterling Group, L.P. Completes Acquisition of Express

The Sterling Group, L.P. Completes Acquisition of Express

The Sterling Group, L.P. (“Sterling”), a Houston-based private equity investment firm, today announced that it has completed the acquisition of a majority interest in CCCG, LLC and its subsidiaries, including Express Integrated Technologies and Express Metal Fabricators (collectively, “Express”). The acquisition was financed with equity from Sterling Group Partners II, L.P. and debt financing from BNP Paribas.

Express, headquartered in Tulsa, OK, is an independent manufacturer engaged in the engineering, design and fabrication of heat transfer, environmental compliance, and sound suppression equipment. The company primarily serves the power generation, refining, chemical, exploration and production, and mining industries. Its primary products include Once-Through Steam Generators, heat Recovery Steam Generators, Simple Cycle Catalyst Systems, Fired Heaters and Waste Heat Recovery Units.

Express was founded by the Cowan family in 1979, and Express Integrated Technologies was established in 2000. Terry Cowan, CEO, and other key management, Jerry Cowan, John Hare, and Philip Childers, will continue their substantial ownership in the business going forward. “We are pleased The Sterling Group has agreed to partner with Express and are eager to capitalize on the many opportunities this new relationship presents. Our new partnership, rooted in the Express management team’s past success and Sterling’s deep knowledge and experience, will effectively drive the transformation of the company in its next phase of growth,” said Terry Cowan, who will remain CEO of Express.

“Over the past 30 years, the Cowan family has successfully developed Express into a leader in the design and fabrication of key process units that serve the North American energy industry,” said Kevin Garland, a Partner of The Sterling Group. “Management has earned a best-in-class reputation based on the company’s engineering capabilities, superior product performance and customer service. We at Sterling are truly excited to acquire an industry leading franchise and partner with management in order to grow the business and create value for all shareholders.”

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group 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 38 platform companies and numerous add-on acquisitions for a total transaction value greater than $8.6 billion. Currently, Sterling has $1.3 billion of committed capital under management through three funds. Current portfolio companies include North American Energy Partners Inc., CST Industries, Inc., Roofing Supply Group, LLC, Universal Fiber Systems, LLC, Velcon Filters, LLC and B&G Crane Services, LLC.

Acquisition
Houston, TX July 29, 2010

The Sterling Group, L.P. Completes Acquisition of B&G Crane Services

The Sterling Group, L.P. Completes Acquisition of B&G Crane Services

The Sterling Group, L.P. (“Sterling”), a Houston-based private equity investment firm, today announced that it has completed the acquisition of B&G Crane Services, LLC (“B&G”). The acquisition was financed with equity primarily from Sterling Group Partners II, L.P. and debt financing from Wells Fargo Capital Finance, BNP Paribas, Capital One Leveraged Finance and Whitney Bank.

Headquartered in New Orleans, Louisiana, B&G specializes in providing fully operated and maintained crane services, heavy rigging and specialty hauling services in the Louisiana Gulf Coast region. The Company has a fleet of over 100 cranes ranging from 6 to 825 tons in capacity and a truck fleet of over 50 vehicles. The Company’s crane rental fleet consists primarily of rough terrain, lattice boom truck cranes, crawler cranes and hydraulic truck cranes. The specialty hauling division includes modular platform trailers, gantry lift systems and specialty truck hauling capabilities. B&G’s primary market consists of petrochemical, refining and industrial customers within a 150 mile radius of the Company’s New Orleans and Baton Rouge facilities.

B&G was founded in 1946 by Xavier J. Grilletta Sr. His son, Xavier J. Grilletta Jr., has been CEO since 2007 and has worked for B&G for more than 32 years. The Grilletta family and members of management will continue to be meaningful shareholders in B&G in partnership with Sterling. “B&G has spent over 60 years building a blueprint for success in the crane and heavy rigging industry throughout Southern Louisiana. We are thrilled to combine forces with The Sterling Group and duplicate this success in other regions of the Gulf Coast. Our combined experience and resources create great opportunities for growth and continued success in the industry,” said Xavier J. Grilletta Jr., who will remain CEO of B&G and continue working alongside other family members and senior management.

“Xavier, his family and their employees have established a tremendous reputation over the last 64 years for providing safe and efficient crane services in the Louisiana Gulf Coast region. We look forward to working with Xavier and the rest of the management team to continue to provide outstanding service to B&G’s customers and grow the business,” said Kent Wallace, a Partner of The Sterling Group. “B&G has significant growth opportunities both in its core Louisiana market and in the Texas Gulf Coast and Mississippi Gulf Coast markets.”

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group 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 37 platform companies and numerous add-on acquisitions for a total transaction value greater than $8.5 billion. Currently, Sterling has $1.3 billion of committed capital under management through three funds. Current portfolio companies include North American Energy Partners Inc., CST Industries, Inc., Roofing Supply Group, LLC, Universal Fiber Systems, LLC and Velcon Filters, LLC.

Acquisition
Dallas, TX March 31, 2010

Roofing Supply Group LLC Announces Acquisition of the Assets of Northwest Roofing Supply, Inc.’s Roofing Division

Roofing Supply Group LLC Announces Acquisition of the Assets of Northwest Roofing Supply, Inc.’s Roofing Division

Roofing Supply Group, LLC (“RSG”), a national leader in the wholesale distribution of roofing supplies and related materials, today announced that it has acquired the assets of Northwest Roofing Supply, Inc.’s roofing division (the “Northwest Roofing Division”). Based in Oklahoma City, OK with a satellite office in Lawton, OK, and more than twenty years servicing local contractors and builders, the Northwest Roofing Division has established itself as a leading distributor of residential roofing products in the Oklahoma market.

“Northwest Roofing Supply has long been recognized as one of the leading distributors of quality roofing materials in Oklahoma,” said Mike Farrell, President and CEO of RSG. “We are honored that Cliff and Diane Stockton have chosen to sell the roofing division to RSG and look forward to working with Rick Misuraca, branch manager, and his team of seasoned professionals to continue to deliver superior products and service to the Oklahoma market.”

RSG operates a strategic distribution network of 58 branches across 22 states, focused exclusively on residential and commercial roofing products and accessories. The Northwest acquisition further strengthens RSG’s geographic position and ability to serve its customer base.

Roofing Supply Group is a portfolio company of The Sterling Group, L.P.

About Roofing Supply Group
Roofing Supply Group headquartered in Dallas, Texas, is one of the largest wholesale distributors of roofing supplies and related materials in the United States. Through its network of 58 branches in 22 states, RSG provides one-step distribution services from roofing product manufacturers to roofing contractors and homebuilders. Each branch carries a complete line of roofing products for residential and commercial roofing, including composition asphalt shingles, underlayment, and associated ancillary products.

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group is a Houston based private equity firm targeting controlling interests in basic manufacturing, industrial services, and distribution companies. Sterling emphasizes strategic and operational value creation in partnership with management. Typical enterprise values range from $100 to $500 million. Over its nearly 30 year history, Sterling has acquired 36 platform companies and numerous add-on acquisitions aggregating approximately $8.6 billion in transaction value. Currently, Sterling has $1.3 billion of committed capital under management.

For additional information, please contact:
Roofing Supply Group, LLC
Paul Drobnitch
(214) 956 5184
pdrobnitch@pdrobnitch@rsgroof.com

The Sterling Group, L.P.
Brian Henry
(713) 341-5753
bhenry@sterling-group.com

Closing
Houston, TX March 16, 2010

The Sterling Group Closes $820 Million Fund III

The Sterling Group Closes $820 Million Fund III

The Sterling Group, L.P. a Houston based middle-market private equity firm focused on operational value creation, today announced the final closing of Sterling Group Partners III, L.P. (Fund III) at $820 million. Fund III, raised in 10 months and oversubscribed, closed significantly above its $600 million target. It is the successor to Sterling Group Partners II, L.P. (Fund II), a $470 million private equity fund organized in 2005. With the close of Fund III, Sterling has approximately $1.3 billion in committed capital under management.

As with previous funds, the objective of Fund III is to create superior returns by acquiring companies with significant opportunities to drive strategic and operational improvements in partnership with management. Fund III will focus on middle-market businesses in manufacturing, industrial service and distribution, typically with $100 million to $500 million in total enterprise value. The Fund will focus primarily on corporate carve outs, buy and builds, family-owned businesses and other complicated sale processes.

Lazard Freres acted as Sterling’s exclusive global placement agent for Fund III. Paul, Weiss, Rifkind, Wharton and Garrison LLP acted as legal counsel.

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group is a Houston based private equity firm targeting controlling interests in basic manufacturing, industrial services, and distribution companies. Sterling emphasizes strategic and operational value creation in partnership with management. Typical enterprise values range from $100 to $500 million. Over its nearly 30 year history, Sterling has acquired 36 platform companies and numerous add-on acquisitions aggregating approximately $8.6 billion in transaction value. Currently, Sterling has $1.3 billion of committed capital under management.

Acquisition
Kansas City, KS September 17, 2009

CST Industries, Inc. Announces Acquisition of Temcor, Inc.

CST Industries, Inc. Announces Acquisition of Temcor, Inc.

CST Industries, Inc. (CST), a global leader in the design, manufacture, and installation of storage tanks and covers, today announced that it has acquired Temcor, Inc. from Solis Capital Partners, L.L.C., a Southern California-based private equity firm. Temcor is a leading global provider of specialized aluminum dome structures headquartered in Gardena, California. Temcor designs, manufactures and erects clear-span aluminum domes and specialty covers for energy, infrastructure, water and wastewater applications. Temcor is the largest aluminum dome provider in the world with over 7,500 structures installed in 72 countries on all seven continents. Temcor is a fully integrated cover manufacturer combining proprietary design engineering capabilities, patented technologies, precision manufacturing and in-field domestic erection capabilities.

“Temcor is recognized internationally as a leader in aluminum domes and specialty covers. Its engineering expertise, global selling network, world class manufacturing operations, led by an experienced management team, are a strong fit with CST’s existing businesses,” said Brian Bauerbach, President and CEO of CST. “We look forward to working closely with Temcor’s management team to deliver the best storage and cover products and services to our customers worldwide.”

CST Industries has built an extensive portfolio of brands and products for critical storage requirements. The Temcor acquisition further strengthens CST’s overall position and ability to serve the industry.

CST Industries is a portfolio company of The Sterling Group, L.P.

About CST Industries, Inc.
CST Industries, Inc., headquartered in Kansas City, is the global leader in the manufacture and erection of factory coated metal storage tanks, aluminum domes and specialty covers. CST’s existing company portfolio consists of Columbian TecTank, Engineered Storage Products, Conservatek Industries, Inc. and CST Vulcan, Inc. Manufacturing facilities and technical design centers are located in Parsons, Kansas; Winchester, Tennessee; DeKalb, Illinois; Conroe, Texas and the United Kingdom. Regional sales offices are located throughout North America and in Mexico, Argentina, United Kingdom, Singapore and Dubai.

About Solis Capital Partners, L.L.C.
Solis Capital Partners, founded in 2002, is a disciplined and innovative private equity firm focused on the middle market. Solis favors service and manufacturing companies with enterprise values ranging from $10 to $100 million, with solid management, strong business fundamentals, market cycle resilience, a history of profitability and potential for organic growth.

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group 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 to $500 million. Sterling has sponsored the buyout of over 35 platform portfolio companies and numerous add-on acquisitions aggregating a total transaction value of approximately $8 billion. Currently, Sterling has $600 million of committed capital under management.

For additional information, please contact:

CST Industries, Inc.
Tony Thill
(913) 621-3700
tthill@tanks.com

Solis Capital Partners, L.L.C.
Craig Dupper
(949) 720-4671
craig@soliscapital.com

The Sterling Group, L.P.
Francis Carr
(713) 341-5739
fcarr@sterling-group.com

Acquisition
Houston, TX April 30, 2009

The Sterling Group, L.P. Completes Acquisition of Velcon Filters, LLC

The Sterling Group, L.P. Completes Acquisition of Velcon Filters, LLC

The Sterling Group, L.P. (“Sterling”), a Houston-based private equity investment firm, today announced that it has completed the acquisition of Velcon Filters, LLC (“Velcon”). The acquisition was financed with equity primarily from Sterling Group Partners II, L.P. and debt financing from BNP Paribas and Amegy Bank of Texas.

Velcon, headquartered in Colorado Springs, CO, is a niche manufacturer of filtration systems, including vessels and replacement cartridges, that meet specific requirements for fluid filtration processes in a variety of domestic and international end-markets. Velcon is a global leader in the filtration process for jet fuel delivery, manufacturing products that filter, purify and remove water from jet fuel along the transport chain from the refinery to the aircraft. End users of Velcon’s products primarily include airports, contracted fuel providers, FBO operators, militaries, pipeline operators and to a lesser extent commercial and industrial diesel consumers, refineries and utilities.

Velcon was founded in 1953 by Lu Taylor. His son, David Taylor has run the business for the past 18 years. The Taylor family and members of management will continue to be substantial shareholders in Velcon in partnership with Sterling. “We are excited about the opportunity to partner with The Sterling Group given their proven track record. The Velcon team believes this partnership will provide significant opportunities to further develop and expand the company’s reach,” said David Taylor, who will remain CEO of Velcon.

“We look forward to working with Dave and the rest of the management team to continue to grow the business and create value for all shareholders,” said Greg Elliott, a Partner of The Sterling Group. “Velcon, with its strong reputation in the U.S. and abroad, is an ideal platform to expand into complementary product lines and other niche liquid filtration segments.”

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group, L.P. (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 36 platform 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 through two funds, including Sterling Group Partners II, L.P. Current portfolio companies include North American Energy Partners Inc., Panolam Industries International, Inc., CST Industries, Inc., Roofing Supply Group, LLC, BTEC Turbines LP and Universal Fiber Systems, LLC.

For additional information, please contact:
The Sterling Group, L.P.
Kevin Garland, Partner
(713) 877-8257
kgarland@sterling-group.com

News
Houston, TX August 25, 2008

The Sterling Group, L.P. completes the sale of Hudson Products Holdings, Inc.

The Sterling Group, L.P. completes the sale of Hudson Products Holdings, Inc.

The Sterling Group, L.P., a middle-market private equity firm based in Houston, Texas, today announced that they have finalized the sale of Hudson Products Holdings, Inc. to Riverstone Holdings LLC.

Since 1939, Hudson Products (www.hudsonproducts.com) has designed and manufactured air-cooled heat exchanger equipment to serve the oil, gas, and petrochemical processing industries. Through continuous innovation, Hudson became the pioneer in this field, developing internationally recognized trademarks such as Fin-Fan® Air-Cooled Heat Exchangers, Hy-Fin® Extruded Finned Tubing, and Tuf-Lite® and Tuf-Lite II® FRP Axial Flow Fans for Air coolers, cooling towers, condensers, chillers, and HVAC applications. Hudson’s premier products and reputation for supplying the highest quality, reliability, and service in the industry has resulted in an installed base of over 35,000 ACHE’s and 200,000 fans throughout the world.

“Hudson exemplifies our investment philosophy – to partner with management and employees, focusing on strategic initiatives to grow the business and create value for all the shareholders. Hudson, under the leadership of Chris Yunkun, has focused on these initiatives and improved performance significantly since our acquisition of Hudson in December 2006,” said Kevin Garland, a Partner of The Sterling Group.

The Hudson sale represents the first sale of a portfolio company in Sterling Group Partners II, a $470 million fund controlled by The Sterling Group, L.P.

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 of approximately $8 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 North American Energy Partners Inc., Propex Inc., Panolam Industries International, Inc., CST Industries, Inc., Roofing Supply Group, LLC, BTEC Turbines LP, and Universal Fiber Systems.

About Riverstone Holdings LLC
Riverstone Holdings LLC, an energy and power-focused private equity firm in 2000, has approximately $14.8 billion under management across six investment funds. Riverstone conducts buyout and growth capital investments in the midstream, exploration & production, oilfield service, power, and renewable sectors of the energy industry. With offices in New York, London and Houston, the firm has committed approximately $8.5 billion to more than 50 investments in North America, Latin America, Europe and Asia. For more information, visit www.riverstonellc.com.

For additional information, please contact:
The Sterling Group, L.P.
Kevin Garland, Partner
(713) 877-8257
kgarland@sterling-group.com

Acquisition
Kansas City, KS May 1, 2008

CST Industries, Inc. Announces Acquisition of Conservatek Industries, Inc.

CST Industries, Inc. Announces Acquisition of Conservatek Industries, Inc.

CST Industries, Inc. (CST), a global leader in the design, manufacture, and sale of factory coated metal storage tanks and silos, today announced that it has acquired Conservatek Industries, Inc. The Sterling Group, L.P. , a Houston-based private equity firm, is the majority owner of CST.

Headquartered in Conroe, Texas, Conservatek is a leading manufacturer and installer of custom designed aluminum covers for various industries and applications worldwide. The Company’s broad product offering includes aluminum geodesic domes, extruded and formed flat covers, truss and joist supported roof structures and custom architectural cover designs for use in a wide variety of applications. Conservatek provides covers for storage tank applications in water, wastewater and petroleum as well as large dome structures for the storage of dry bulk materials. Conservatek’s architectural products are incorporated in many different building designs all over the world.

“Conservatek is recognized internationally as a leading designer and manufacturer of aluminum covers. Its design and engineering expertise, experienced management team and manufacturing capabilities are a strong fit with CST’s existing businesses” said Ron Stier, President and CEO of CST. “We look forward to working closely with Conservatek’s management team to enhance both organizations’ performance in our markets worldwide.”

About CST Industries, Inc.
CST Industries, Inc. (www.tanks.com), headquartered in Kansas City, is the global leader in the manufacture and erection of factory coated metal storage tanks. CST provides unique and proprietary glass-fused-to-steel and epoxy coating technology for its factory welded and bolted storage systems. CST’s existing company portfolio consists of Columbian TecTank, Engineered Storage Products and CST Vulcan, Inc. Manufacturing facilities and technical design centers are located in Parsons, Kansas; Winchester, Tennessee; DeKalb, Illinois and the United Kingdom. Regional sales offices are located throughout North America and in Mexico, Argentina, United Kingdom, Singapore and Dubai.

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 to $500 million. Sterling has sponsored the buyout of over 30 portfolio companies and numerous add-on acquisitions for a total transaction value of approximately $8 billion. Currently, Sterling has $600 million of committed capital under management.

For additional information about CST, please contact:
CST Industries, Inc.
Tony Thill
(913) 621-3700
tthill@tanks.com

For additional information about Sterling, please contact:
The Sterling Group, L.P.
Francis Carr
(713) 341-5739
fcarr@sterling-group.com

Acquisition
Houston, TX October 26, 2007

The Sterling Group, L.P. Completes Acquisition of Universal Fiber Systems, LLC

The Sterling Group, L.P. Completes Acquisition of Universal Fiber Systems, LLC

The Sterling Group, L.P. (“Sterling”), a Houston-based private equity investment firm, today announced that it has finalized the acquisition of Universal Fiber Systems, LLC (“UFS”), headquartered in Bristol, VA.. The acquisition was financed with equity primarily from Sterling Group Partners II, L.P. and debt financing was solely arranged by BNP Paribas.

UFS is a leading niche manufacturer of high-performance, specialty synthetic fibers for niche segments of the commercial carpet, transportation carpet, and specialty textile industries. UFS acts as a strategic partner to its blue-chip customer base of leading commercial carpet manufacturers, Tier 1 automotive suppliers, and value-added textile manufacturers by supplying specialty yarn synthesized from nylon, polyester, and specialty polymers needed to produce a diverse range of unique end-products. UFS is collectively led by three key executives: R. Marcus Ammen, Chief Financial Officer; Bentley E. Park, President, Universal Fibers; and John T. Amirtharaj, President, Premiere Fibers.

“Sterling has invested in several fiber businesses, including Fiber Industries and Propex Inc. We are excited to find this opportunity where we feel we can add value post closing,” said Billy Oehmig, a Partner with Sterling. “UFS is a good fit for us and we look forward to working with an outstanding management team and the excellent board of industry experts whom we have assembled.”

About The Sterling Group, L.P.
Founded in 1982, The Sterling Group, L.P. (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 $8 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 North American Energy Partners Inc. (NYSE: NOA), Propex Inc., Panolam Industries International, Inc., CST Industries, Inc., Roofing Supply Group, LLC, BTEC Turbines LP, and Hudson Products Corporation.

For additional information, please contact:
The Sterling Group, L.P.
Kent Wallace, Managing Director
(713) 877-8257
kwallace@sterling-group.com

Acquisition
Houston, TX June 15, 2007

Hudson Products Holdings, Inc. Completes the Acquisition of Smithco Engineering, Inc. and Metal Services, Inc.

Hudson Products Holdings, Inc. Completes the Acquisition of Smithco Engineering, Inc. and Metal Services, Inc.

Hudson Products Holdings, Inc. (Hudson), a global manufacturer of air-cooled heat exchangers and axial-flow fans, announced today that it has closed the acquisition of Smithco Engineering, Inc. and Metal Services, Inc., (collectively Smithco). The Sterling Group, L.P., a Houston-based private equity firm, is the majority owner of Hudson.

Smithco, based in Tulsa, Oklahoma, manufactures large-scale air-cooled heat exchangers. Products include both forced and induced-draft heat exchangers which are sold to customers such as oil refineries, gas processors, gas transmission pipelines, power generation plants, utilities and chemical processing plants. Smithco was previously owned by Judy Smith of Laguna Beach, California.

“I am pleased to welcome Smithco to the Hudson family,” said Chris Yunkun, CEO of Hudson. “The addition of Smithco broadens Hudson’s product offering and market presence. We look forward to working closely with Smithco’s management team to enhance both organizations’ performance in the air-cooled heat exchanger market.”

The acquisition was financed entirely with an extension of Hudson’s senior credit facilities. Concurrent with the acquisition, Hudson was able to more favorably re-price its senior credit facility. Debt financing for the transaction was led by BNP Paribas.

About Hudson Products Holdings, Inc.
Hudson is a global heat transfer solutions firm that provides custom-designed, highly engineered air-cooled heat exchangers and axial-flow fans, and also offers aftermarket parts and services. Hudson primarily serves clients in the oil, gas and petrochemical industries. Hudson is headquartered in Sugar Land, Texas, with manufacturing facilities in Beasley, Texas; Pombia, Italy; and Monterrey, Mexico.

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 to $500 million. Sterling has sponsored the buyout of over 30 portfolio companies and numerous add-on acquisitions for a total transaction value of approximately $8 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 Energy Partners Inc. (NYSE: NOA), Propex Inc., CST Industries, Inc., Roofing Supply Group, LLC, and BTEC Turbines LP.

For additional information, please contact:
The Sterling Group, L.P.
Kevin Garland
(713) 877-8257
kgarland@sterling-group.com

Acquisition
Houston, TX December 8, 2006

The Sterling Group, L.P. Completes Acquisition Of Hudson Products Corporation

The Sterling Group, L.P. Completes Acquisition Of Hudson Products Corporation

The Sterling Group, L.P. (“Sterling”), a Houston-based private equity firm, today announced that it has finalized the acquisition of Hudson Products Corporation (“Hudson” or the “Company”). The Company, headquartered in Sugarland, Texas, was an affiliate of Madison Capital Partners (“Madison”), a Chicago-based investment firm.

Hudson is one of the world’s leading heat transfer solutions firms providing air-cooled heat exchangers and axial-flow fans to some of the largest processors in the petroleum, natural gas, power generation, petrochemical and chemical industries. Hudson’s manufacturing facilities are located in Beasley, TX, Pombia, Italy, and Monterrey, Mexico.

“As part of Madison over these past four years, Hudson has begun to realize its full potential. Madison’s influence has played a key role in performance improvements and prepared the Company to take the next step. Hudson’s management team and workforce are the finest in the industry as evidenced by the Company’s strong market position and reputation for quality, reliability and service,” said Chris Yunkun, CEO of Hudson. “We are very excited to be joining the Sterling family. Sterling’s familiarity and many years of experience in the markets Hudson serves will be an invaluable asset as we develop our future path together. Hudson looks forward to Sterling’s support as we pursue growth opportunities including new products, expanded distribution, internal improvements and strategic acquisitions.”

“Hudson and its affiliated companies have nearly 70 years of experience in producing high quality axial-flow fans and air-cooled heat exchangers. In recent years, under the leadership of Chris Yunkun, the Company has improved significantly,” said Kevin Garland, a Principal with Sterling. “We look forward to working with Chris and his team to continue to grow and improve Hudson.”

The acquisition was financed with equity primarily from Sterling Group Partners II, L.P., as well as significant reinvestment by an affiliate of Madison and the Hudson management team. Debt financing for the transaction was led by BNP Paribas.

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 Energy Partners Inc. (NYSE: NOA), Propex Inc., CST Industries, Inc., Roofing Supply Group, LLC, and BTEC Turbines LP.

For additional information, please contact:
The Sterling Group, L.P.
Gary Rosenthal
(713) 877-8257
grosenthal@sterling-group.com

News
Acheson, AB November 28, 2006

North American Energy Partners Completes Initial Public Offering

North American Energy Partners Completes Initial Public Offering

North American Energy Partners Inc. (TSX / NYSE: NOA) (the “Company”) announced today that it completed its previously announced initial public offering (the “Offering”) of 12,500,000 of its voting common shares (“Common Shares”) at US$16.00 or C$18.38 per share. As part of the Offering, the Company sold 8,750,000 Common Shares and existing shareholders sold 3,750,000 Common Shares. The Company and the selling shareholders have granted the underwriters a 30-day option (the “over-allotment option”) to purchase up to an additional 1,875,000 Common Shares at the initial public offering price to cover any possible over-allotments.

In connection with the completion of the Offering, the Company completed the previously announced purchase of its outstanding 9% Senior Secured Notes due 2010. The Company also completed the amalgamation of NACG Holdings Inc. with its two subsidiaries, NACG Preferred Corp. and North American Energy Partners Inc., under the name North American Energy Partners Inc., as well as a pre-closing capital reorganization.

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The information provided in this news release is not an admission that any entity named in this release is a joint actor with any other entity named in this news release. The information relating to the Company’s principal shareholders was provided by each shareholder. This news release shall not constitute an offer to sell or a solicitation of an offer to buy any Common Shares in any province, territory or state in which such offer or solicitation would be unlawful.

******************

North American Energy Partners Inc. is one of the largest providers of mining and site preparation, piling and pipeline installation services in western Canada. For over 50 years, we have provided services to large oil, natural gas and resource companies, with a principal focus in the Canadian oil sands. We maintain one of the largest independently owned equipment fleets in the region.

For further information, please contact:
Vincent Gallant
Vice President, Corporate & Secretary
North American Energy Partners Inc.
Phone: (780) 960-2255
Fax: (780) 960-7167
Email: vgallant@nacg.ca

Acquisition
Houston, TX September 29, 2006

The Sterling Group, L.P. Announces Acquisition of BTEC Turbines LP

The Sterling Group, L.P. Announces Acquisition of BTEC Turbines LP

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

Acquisition
Houston, TX September 6, 2006

The Sterling Group, L.P. Completes Acquisition of Roofing Supply Group

The Sterling Group, L.P. Completes Acquisition of Roofing Supply Group

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

Acquisition
Houston, TX August 11, 2006

The Sterling Group, L.P. Announces Acquisition of CST Industries, Inc.

The Sterling Group, L.P. Announces Acquisition of CST Industries, Inc.

The Sterling Group, L.P. (“Sterling”), a Houston-based private equity firm, today announced that it has finalized the acquisition of CST Industries, Inc. (“CST”) from CSTI Holdings LLC, an entity controlled by Don Wagner, CST’s President and CEO, and George K. Baum Capital Partners, L.P., a Kansas City, Missouri-based private equity fund.

Headquartered in Kansas City, Kansas, CST is a leading global manufacturer and erector of factory coated metal storage tanks. The Company’s comprehensive product offering includes bolted and factory welded tanks for use in a wide variety of applications, aluminum geodesic domes, and agricultural feed and waste storage systems. CST serves numerous end markets including water, wastewater, fire protection, oilfield, agriculture, industrial liquid, plastics, chemicals, minerals, food, construction materials and energy. CST’s manufacturing facilities are located in Parsons, Kansas; DeKalb, Illinois; Winchester, Tennessee; and the United Kingdom.

“This company and its predecessors have manufactured tanks for over 100 years, and we intend to continue to support management in their growth plans,” said Frank Hevrdejs, Chairman of Sterling. “We have great respect for Don Wagner, Ron Stier and the company they have built, and are excited about the opportunity to partner with CST’s management team, which has proven its ability to grow the business globally by expanding sales of the company’s tanks into new markets.”

“CST has had success in growing its business because of its great employees and the advantages of its products,” said Mr. Wagner, who has been the President and CEO of CST and its predecessor since 1990. “Ron Stier has been an integral part of the company for nine years and is well prepared to lead CST to the next level. This company is a great platform for growth, and with the financial and operating assistance of the Sterling Group, the future is very bright.”

“It’s an exciting time for our business and we are looking forward to our partnership with Sterling. We clearly share a common vision of growing our business through satisfying our customers across our many markets,” said Ron Stier, the recently-promoted CEO of CST. “Don has been instrumental to the success of CST and, personally, a great partner. We are pleased he will continue to be active on our Board providing continued support to our management team.”

The acquisition was financed primarily with equity from Sterling Group Partners II, L.P., as well as a significant reinvestment by the CST management team. BNP Paribas arranged debt financing for the transaction.

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 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. Current portfolio companies include Panolam Industries, North American Construction Group and Propex Fabrics.

For additional information:
The Sterling Group, L.P.
Kevin Garland
(713) 877-8257
kgarland@sterling-group.com

Acquisition
Houston, TX March 1, 2006

Panolam Industries Completes Acquisition of Nevamar to Form Premier Decorative Laminates Company

Panolam Industries Completes Acquisition of Nevamar to Form Premier Decorative Laminates Company

Panolam Industries International, Inc., the North American market leader and innovator in the decorative laminate panel industry, today announced that it has finalized its acquisition of all the outstanding equity securities of Nevamar Holdco, LLC, the parent of Nevamar Company, LLC, a leading manufacturer of decorative surface products. Panolam is a portfolio company of private equity firms Genstar Capital, LLC and The Sterling Group, L.P.

With four manufacturing and six distribution centers located throughout the United States, Nevamar designs and sells decorative laminates and other surfacing materials used in commercial and residential furniture, fixtures, and cabinet markets, as well as the graphic arts industry. Nevamar features brand names including Nevamar(R), Pluswood(TM), Vinylface(TM), Lamclad(TM), and Quinella(TM). In 2005 Nevamar generated estimated revenues of approximately $200 million.

“These are exciting times for all of us at Panolam Industries,” said Robert J. Muller, Jr., chairman, CEO and president of Conn.-based Panolam. “Through innovative products, great design, and a strong distribution network, we look forward to growing all of our brands of high pressure laminates and thermally fused melamine. Incorporating the Nevamar brands into our mix and implementing strategies that have been successful for us will make all the brands stronger and will allow us to capitalize on many new opportunities in North America and around the world.”

“Panolam’s acquisition of Nevamar is a rare opportunity to combine two leading providers of decorative panels,” said Jean-Pierre L. Conte, chairman and managing director of Genstar Capital. “The acquisition will allow the combined business to offer superior products and services to its customers and will enable Panolam’s management team to create significant shareholder value by capturing numerous revenue and cost synergies.”

Genstar Capital and The Sterling Group finalized their acquisition of Panolam on September 30, 2005.

About Panolam Industries International, Inc.
Panolam Industries (www.panolam.com) is a market leader and innovator in the decorative laminate industry. The company’s products, which are marketed under the widely recognized Panolam((R)) and Pionite((R)) brand names, are used in a wide variety of residential and commercial indoor surfacing applications, including kitchen and bath cabinets, furniture, store fixtures, case goods, and other applications. High pressure laminates (HPL), thermally-fused melamine (TFM), fiber reinforced laminate (FRL(TM)), Leatherlam(R), Conolite(R) aircraft laminates, and Panolam’s engineered laminates are utilized as durable and economical alternatives for natural surfacing materials such as wood, stone and ceramic. A typical customer or end-user of decorative overlays might utilize TFM, HPL, FRL(TM) or Leatherlam(R) for different surfaces of the same project. As a vertically integrated manufacturer, Panolam produces decorative surfaces that offer unparalleled quality, variety and flexibility to customers worldwide.

About Genstar Capital, LLC
Based in San Francisco, Genstar Capital (www.gencap.com) is a private equity investment firm that makes leveraged investments in quality middle-market companies. Genstar Capital works in partnership with management to transform its portfolio companies into industry-leading businesses. With more than $900 million of committed capital under management and significant experience investing in businesses, Genstar focuses on selected segments of the life sciences, business services, and industrial technology sectors.

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 leveraged buyout investments in basic manufacturing, industrial services and distribution companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling partners with management teams to acquire companies where it has identified specific opportunities to grow and improve the business. Sterling has sponsored the buyouts of 30 portfolio companies and numerous add-on acquisitions for a total transaction value greater than $7 billion. Sterling’s current fund, Sterling Group Partners II, L.P. has $470 million of committed capital.

For additional information:
The Sterling Group, L.P.
Kevin Garland
(713) 877-8257
kgarland@sterling-group.com

News
Houston, TX October 17, 2005

The Sterling Group Completes Sale Of Exopack

The Sterling Group Completes Sale Of Exopack

Private equity firm The Sterling Group, L.P. today announced that they have finalized the sale of Exopack Holding Corp. to Sun Capital Partners, Inc.

Exopack offers one of the broadest product offerings in the flexible packaging industry, supplying both industrial and consumer markets with a variety of paper and plastic packaging options. 2004 revenues were approximately $510 million. Exopack was purchased in 2001 from International Paper and held in The Sterling Group’s Fund I. The operating subsidiary, Exopack LLC, will continue under the leadership of President and CEO Stan Bikulege.

“Exopack exemplifies our investment philosophy – to partner with the management and employees, focus on strategic initiatives to grow the business and create value for all the shareholders. We salute all at Exopack and wish them well with Sun Capital,” said Billy Oehmig, a Principal of The Sterling Group.

The Exopack sale represents the second sale of a portfolio company in The Sterling Group’s first fund, Sterling Group Partners I, L.P. There are two remaining portfolio companies in the first fund, Propex Fabrics and North American Energy Partners. The Sterling Group is now making acquisitions of companies through its second fund, Sterling Group Partners II, L.P., which closed at $470 million in May 2005.

About The Sterling Group, L.P.
The Sterling Group is a private equity investment firm founded in 1982 that targets controlling interests in leveraged buyout investments in basic manufacturing, industrial services and distribution companies with enterprise values typically between $100 million and $500 million. Sterling partners with management teams to acquire companies where it has identified specific opportunities to grow and improve the business. Sterling has sponsored the buyouts of 30 portfolio companies and numerous add-on acquisitions for a total transaction value greater than $7 billion. For more information visit www.sterling-group.com.

For additional information:
The Sterling Group, L.P.
Kevin Garland
(713) 877-8257
kgarland@sterling-group.com

Acquisition
San Francisco, Houston and Shelton, CT October 4, 2005

Genstar Capital, Sterling Group Complete Acquisition of Panolam Industries

Genstar Capital, Sterling Group Complete Acquisition of Panolam Industries

Private equity firms Genstar Capital, LLC and The Sterling Group, L.P. today announced that they have finalized the acquisition of Panolam Industries International, Inc. in a transaction valued at $345 million. Management of the purchased organization will also participate in the company’s ownership.

With five manufacturing facilities and three distribution centers in the US and Canada, Panolam designs and manufactures decorative laminate panels that serve as durable and economical substitutes for natural surfacing materials such as wood, stone and ceramic. Commercial and residential uses of these laminates include cabinets, countertops, display cases and restaurant furniture. Panolam is based in Shelton, Connecticut.

“We’re looking forward to working with Genstar and Sterling to continue to build on the successes we’ve achieved,” said Bob Muller, chairman, president and chief executive officer of Panolam. “Our customers depend on Panolam’s commitment to top-quality, cost-efficient products, and serving our customers remains our top priority.”

“We understand this industry very well given our ownership of Panolam from 1996 to 1999, and we couldn’t be more excited to be working with Bob Muller and his team again,” said J.P. Conte, chairman and managing director of Genstar Capital. “We are particularly looking forward to supporting the company’s expansion into new markets and new products.”

Genstar and Sterling’s acquisition of Panolam was financed with $150 million in high yield debt and a $135 million senior term loan. Financing was led by Credit Suisse First Boston and Jefferies & Company.

About Genstar Capital, LLC
Based in San Francisco, Genstar Capital (www.gencap.com) is a private equity investment firm that makes leveraged investments in quality middle-market companies. Genstar Capital works in partnership with management to transform its portfolio companies into industry-leading businesses. With more than $900 million of committed capital under management and significant experience investing in businesses, Genstar focuses on selected segments of the life sciences, business services, and industrial technology sectors.

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 leveraged buyout investments in basic manufacturing, industrial services and distribution companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling partners with management teams to acquire companies where it has identified specific opportunities to grow and improve the business. Sterling has sponsored the buyouts of 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 the recently closed Sterling Group Partners II, L.P. Prior to 1991 Sterling raised equity on an individual transaction basis. Current portfolio companies include Exopack, North American Construction Group and Propex Fabrics.

About Panolam Industries International, Inc.
Panolam Industries International, Inc. is the North American market leader and innovator in the decorative laminate panel industry. The company offers an integrated, all-inclusive product array at a broad range of price points, including decorative overlay papers, industrial laminates and specialty resins. Panolam employs more than 1,000 people in its five manufacturing facilities (Huntsville, Ontario; Norcross, GA; Albany, OR; Auburn, ME; Morristown, TN) and three distribution centers (Elkhart, IN; Rancho Cucamonga, CA; Covington, GA).

For additional information:
Genstar Capital
Andrea Ginsberg
(415) 751-2017
aginsberg@gencap.com

The Sterling Group, L.P.
Kevin Garland
(713) 877-8257
kgarland@sterling-group.com

Closing
Houston, TX May 25, 2005

The Sterling Group Closes $470 Million Private Equity Fund

The Sterling Group Closes $470 Million Private Equity Fund

The Sterling Group, L.P., a Houston-based private equity firm focused on acquiring North American middle-market manufacturing, industrial service and distribution companies, today announced the final close of Sterling Group Partners II, L.P. (“Fund II”), with aggregate capital commitments of $470 million, including $20 million from the Principals of Sterling. Additionally, The Sterling Group announced the addition of two new members to the Sterling team. Gary Rosenthal, a former Principal with Sterling from 1989 to 1990, has rejoined as a Principal, and Kelly Boots has been named Chief Financial Officer.

The Sterling Group founded more than 23 years ago, is one of the oldest private equity firms in the United States. Sterling’s six Partners – Chairman Frank Hevrdejs, Billy Oehmig, Hunter Nelson, John Hawkins, Kevin Garland and Gary Rosenthal – have over a combined 80 years of experience with The Sterling Group.

The firm will use Fund II to continue to execute its strategy of partnering with management teams to drive strategic, operational and financial improvements in its portfolio companies. Historically, this has often occurred in acquisitions of spin-outs of non-core divisions of large corporations and family-owned businesses as well as buy-and-build strategies in fragmented industries.

Limited partners in Fund II include a diverse group of pension plans, fund-of-funds, university endowments, financial institutions, foundations and individuals. Lazard Freres acted as Sterling’s exclusive global placement agent for Fund II, and Paul, Weiss, Rifkind, Wharton and Garrison LLP acted as legal counsel.

About The Sterling Group, L.P.
The Sterling Group, founded in 1982 by the late Gordon Cain and Frank Hevrdejs, is a Houston-based private equity firm focused on acquiring middle-market manufacturing, industrial services and distribution companies between $100 million and $500 million in enterprise value. In total, the firm has made 29 platform and numerous add-on acquisitions totaling over $7 billion in transaction value. For more information, visit www.sterling-group.com.