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October 05, 2012

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.



Sales

May 31, 2012

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.



Sales

August 25, 2008

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



Sales

October 17, 2005

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