News

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



Acquisition

Kansas City, KS May 01, 2008

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. (“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. (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 08, 2006

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



Acquisition

Acheson, AB November 28, 2006

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.

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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