News

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 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 (“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.



News

Houston, TX December 06, 2010

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. (“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. (“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 (“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



News

Houston, TX March 16, 2010

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. (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. (“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



Sales

Houston, TX 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