Building Products & Infrastructure | Q3 2016

THE BUILDING PRODUCTS & INFRASTRUCTURE TEAM GRANT HAMILTON BlackArch Partners, Managing Director Piper Jaffray, Edgeview Partners, Bank One

M.B.A. from University of Chicago’s Booth School of Business B.S. from Miami University Office:

(704) 414-6318

Cell: (704) 607-8756 [email protected]

PHIL ROSS BlackArch Partners, Associate Robinson, Bradshaw & Hinson, M&A Attorney J.D. from Wake Forest University School of Law, magna cum laude

B.B.A. in Accounting from East Tennessee State University, summa cum laude Office:

Charlotte, NC 227 West Trade Street | Suite 2200 Charlotte, NC 28202 (704) 414-6300

Houston, TX 4400 Post Oak Parkway | Suite 2370 Houston, TX 77027 (713) 380-4300

www.BlackArchPartners.com

(704) 414-6319

Cell: (704) 430-6955 [email protected]

KATHERINE HOWELL BlackArch Partners, Analyst Babson Capital Management, Private Finance Intern B.A. from Davidson College, cum laude Office:

(704) 414-6332

Cell: (336) 813-5046 [email protected]

STRICTLY CONFIDENTIAL

|2

PUBLIC COMPANY TRADING MULTIPLE TRENDS BY SUB-SECTOR 18.0x

Median TEV/EBITDA Multiple

16.0x

14.0x

12.0x

10.0x

8.0x

6.0x

Building Products

STRICTLY CONFIDENTIAL

Building Materials

Distribution & Retail

Engineering & Construction Services

|3

Building Products & Infrastructure Industry Update | Q3 2016

Comparable Public Company Analysis ($ in Millions Except Per Share Amounts) Market Data Price Company

Ticker

9/30/2016

52-Week High

LTM Financial and Performance Data Equity

Low

Value

TEV

(2)

Revenue

EBITDA

(1)

Valuation Multiples

EBITDA

3 Yr. Revenue

Margin

CAGR %

TEV/LTM: Revenue

EBITDA

Building Products Roofing, Siding & Decking Compagnie de Saint-Gobain S.A.

ENXTPA:SGO

$43.24

$47.34

$35.37

$23,950

$31,800

$43,658

$4,407

10.1%

(2.4%)

0.7x

Owens Corning

NYSE:OC

53.39

58.69

38.96

6,127

8,379

5,591

1,041

18.6%

2.6%

1.5x

8.0x

Kingspan Group plc

ISE:KRX

26.95

29.46

19.56

4,798

5,251

3,340

417

12.5%

20.4%

1.6x

12.6x

USG Corporation

NYSE:USG

25.85

30.84

15.85

3,773

5,125

3,864

607

15.7%

3.7%

1.3x

8.4x

Trex Co. Inc.

NYSE:TREX

58.72

64.36

31.11

1,815

1,855

461

108

23.5%

12.6%

4.0x

17.1x

Continental Building Products, Inc.

NYSE:CBPX

20.99

24.78

13.25

849

1,096

447

105

23.4%

0.0%

2.5x

10.5x

17.2%

3.1%

1.5x

9.4x

Median

7.2x

Windows & Doors ASSA ABLOY AB

OM:ASSA B

$20.34

$22.21

$17.14

$22,596

$25,395

$8,182

$1,502

18.4%

13.9%

3.1x

16.9x

Masonite International Corporation

NYSE:DOOR

62.17

72.75

45.14

1,901

2,326

1,964

211

10.8%

4.5%

1.2x

11.0x

Ply Gem Holdings, Inc

NYSE:PGEM

13.36

16.09

8.58

911

1,803

1,881

217

11.6%

16.2%

1.0x

8.3x

Griffon Corporation

NYSE:GFF

17.01

19.24

13.45

727

1,589

1,959

176

9.0%

1.6%

0.8x

9.0x

Quanex Building Products Corporation

NYSE:NX

17.26

21.66

15.33

591

860

874

92

10.5%

12.0%

1.0x

9.4x

Tyman plc

LSE:TYMN

3.64

4.00

2.88

644

831

504

77

15.3%

16.4%

1.6x

10.8x

PGT, Inc.

NASDAQGM:PGTI

10.67

14.05

8.69

522

744

413

61

14.8%

26.8%

1.8x

12.2x

11.6%

13.9%

1.2x

10.8x

Median Kitchen & Bath Masco Corporation

NYSE:MAS

$34.31

$37.38

$23.10

$11,330

$13,410

$7,313

$1,195

16.3%

(3.0%)

1.8x

11.2x

Fortune Brands Home & Security, Inc.

NYSE:FBHS

58.10

64.47

44.19

8,942

10,268

4,908

749

15.3%

8.9%

2.1x

13.7x

Caesarstone Ltd.

NASDAQGS:CSTE

37.71

43.52

27.31

1,327

1,300

523

126

24.1%

17.9%

2.5x

10.3x

American Woodmark Corp.

NASDAQGS:AMWD

80.57

89.89

57.04

1,314

1,119

974

115

11.8%

13.8%

1.1x

9.7x

15.8%

11.4%

2.0x

10.8x

Median Flooring Mohawk Industries Inc.

NYSE:MHK

$200.34

$216.58

$148.56

$14,856

$17,731

$8,631

$1,591

18.4%

10.6%

2.1x

11.1x

Interface Inc.

NASDAQGS:TILE

16.69

24.44

13.70

1,082

1,218

972

142

14.6%

0.9%

1.3x

8.6x

Armstrong Flooring, Inc.

NYSE:AFI

18.88

20.85

11.77

525

523

1,211

56

4.6%

0.0%

0.4x

9.4x

14.6%

0.9%

1.3x

9.4x

Median Electrical & Lighting Schneider Electric SE

ENXTPA:SU

$69.76

$71.48

$50.94

$40,585

$47,153

$28,472

$4,181

14.7%

2.4%

1.7x

11.3x

Acuity Brands, Inc.

NYSE:AYI

264.60

280.89

169.42

11,613

11,631

3,291

568

17.3%

16.4%

3.5x

20.5x

Hubbell Inc.

NYSE:HUBB

107.74

111.23

83.16

5,962

6,670

3,481

593

17.0%

3.6%

1.9x

11.2x

LSI Industries Inc.

NASDAQGS:LYTS

11.23

13.45

7.89

281

247

320

17

5.4%

3.8%

0.8x

14.4x

15.9%

3.7%

1.8x

12.8x

Median HVAC & Plumbing Ingersoll-Rand Plc

NYSE:IR

AO Smith Corp.

NYSE:AOS

Lennox International, Inc.

NYSE:LII

AAON Inc.

NASDAQ:AAON

$67.94

$68.97

$47.08

$17,528

$20,749

$13,476

$1,937

14.4%

8.1%

1.5x

10.7x

49.40

49.70

30.15

8,619

8,233

2,627

518

19.7%

7.4%

3.1x

15.9x

157.03

164.02

105.65

6,827

7,847

3,579

494

13.8%

4.5%

2.2x

15.9x

28.82

29.23

18.85

1,525

1,481

379

92

24.3%

6.6%

3.9x

16.1x

17.0%

7.0%

2.7x

15.9x

Median Subsector Median

Footnotes: (1) LTM refers to the most recent twelve-month period for which data was available (2) Total enterprise value equals equity value plus minority interest, preferred stock and net debt; net debt equals total debt less cash and cash equivalents

Strictly Confidential | BlackArch Partners | 4

11.1x

Building Products & Infrastructure Industry Update | Q3 2016

Comparable Public Company Analysis ($ in Millions Except Per Share Amounts) Market Data Price Company

Ticker

9/30/2016

52-Week High

LTM Financial and Performance Data Equity

Low

Value

TEV

(2)

Revenue

EBITDA

(1)

Valuation Multiples

EBITDA

3 Yr. Revenue

Margin

CAGR %

TEV/LTM: Revenue

EBITDA

Building Materials Aggregates, Cement & Concrete LafargeHolcim Ltd.

SWX:LHN

$53.42

$60.13

$34.33

$32,862

$56,031

$28,998

$2,087

7.2%

11.1%

1.9x

26.9x

CRH plc

ISE:CRG

33.46

34.78

21.78

27,779

36,492

29,938

3,040

10.2%

14.8%

1.2x

12.0x

HeidelbergCement AG

DB:HEI

94.24

95.76

65.98

18,700

26,596

14,893

2,640

17.7%

(0.6%)

1.8x

10.1x

CEMEX, S.A.B. de C.V.

NYSE:CX

7.94

9.09

3.50

11,116

26,534

12,884

2,603

20.2%

8.9%

2.1x

10.2x

Vulcan Materials Company

NYSE:VMC

113.73

127.20

78.83

15,134

17,025

3,607

961

26.6%

11.3%

4.7x

17.7x

Martin Marietta Materials, Inc.

NYSE:MLM

179.11

206.36

108.31

11,362

13,123

3,435

879

25.6%

23.0%

3.8x

14.9x

Boral Limited

ASX:BLD

5.17

5.67

3.92

3,847

4,517

3,212

379

11.8%

1.2%

1.4x

11.9x

Eagle Materials Inc.

NYSE:EXP

77.30

87.57

45.03

3,729

4,218

1,160

345

29.7%

13.0%

3.6x

12.2x

Summit Materials, Inc.

NYSE:SUM

18.65

24.60

13.12

1,399

3,036

1,547

318

20.6%

0.0%

2.0x

9.5x

U.S. Concrete, Inc.

NASDAQCM:USCR

49.66

69.66

40.42

698

1,038

1,079

127

11.8%

24.1%

1.0x

8.2x

19.0%

11.2%

1.9x

12.0x

Median Stone Headwaters Incorporated

NYSE:HW

United States Lime & Minerals, Inc.

NASDAQGS:USLM

$16.92

$21.25

$13.62

$1,254

$1,736

$956

$172

18.0%

12.1%

1.8x

10.1x

66.00

66.62

45.75

367

304

136

38

27.6%

0.2%

2.2x

8.1x

22.8%

6.2%

2.0x

9.1x

Median Lumber & Wood Products Louisiana-Pacific Corp.

NYSE:LPX

$18.83

$20.97

$13.31

$2,677

$2,949

$2,146

$273

12.7%

1.4%

1.4x

NM

Norbord, Inc.

TSX:OSB

25.68

25.89

14.63

2,198

2,921

1,699

314

18.5%

7.6%

1.7x

9.3x

West Fraser Timber Co. Ltd.

TSX:WFT

30.80

42.66

26.93

2,436

2,826

3,319

421

12.7%

8.5%

0.9x

6.7x

Canfor Corp.

TSX:CFP

11.10

16.20

9.11

1,474

2,009

3,234

367

11.4%

11.2%

0.6x

5.5x

Universal Forest Products Inc.

NASDAQGS:UFPI

98.49

110.97

57.11

2,000

1,999

3,035

202

6.6%

7.9%

0.7x

9.9x

Boise Cascade Company

NYSE:BCC

25.40

33.15

13.80

984

1,354

3,868

160

4.1%

6.9%

0.4x

8.5x

12.0%

7.8%

0.8x

8.5x

Median Timber & Forest Products Weyerhaeuser Co.

NYSE:WY

$31.94

$33.17

$22.06

$23,914

$32,798

$7,871

$1,765

22.4%

1.7%

4.2x

18.6x

Rayonier Inc.

NYSE:RYN

26.54

28.16

17.85

3,252

4,297

685

306

44.6%

(13.6%)

6.3x

14.0x

Deltic Timber Corporation

NYSE:DEL

67.73

72.74

50.84

823

1,060

211

40

19.1%

3.8%

5.0x

26.3x

22.4%

1.7%

5.0x

18.6x

Median Subsector Median

Footnotes: (1) LTM refers to the most recent twelve-month period for which data was available (2) Total enterprise value equals equity value plus minority interest, preferred stock and net debt; net debt equals total debt less cash and cash equivalents

Strictly Confidential | BlackArch Partners | 5

10.2x

Building Products & Infrastructure Industry Update | Q3 2016

Comparable Public Company Analysis ($ in Millions Except Per Share Amounts) Market Data Price Company

Ticker

9/30/2016

52-Week High

LTM Financial and Performance Data Equity

Low

Value

TEV

(2)

Revenue

EBITDA

(1)

Valuation Multiples

EBITDA

3 Yr. Revenue

Margin

CAGR %

TEV/LTM: Revenue

EBITDA

Distribution & Retail Distributors Wolseley plc

LSE:WOS

$56.71

$58.05

$41.85

$14,111

$15,367

$19,161

$1,380

7.2%

3.1%

0.8x

11.1x

Fastenal Company

NASDAQGS:FAST

41.78

49.99

34.45

12,073

12,348

3,937

892

22.7%

6.4%

3.1x

13.8x

HD Supply Holdings, Inc.

NASDAQGS:HDS

31.98

36.99

21.26

6,429

10,424

7,588

864

11.4%

(3.1%)

1.4x

12.1x

Watsco Inc.

NYSE:WSO

140.90

149.99

106.58

4,608

5,116

4,211

359

8.5%

4.6%

1.2x

14.2x

Beacon Roofing Supply, Inc.

NASDAQGS:BECN

42.07

48.96

32.21

2,514

3,668

3,740

285

7.6%

20.2%

1.0x

12.9x

Builders FirstSource, Inc.

NASDAQGS:BLDR

11.51

15.72

6.50

1,267

3,199

5,806

301

5.2%

64.8%

0.6x

10.6x

BMC Stock Holdings, Inc.

NASDAQGS:BMCH

17.73

21.50

12.14

1,178

1,573

2,452

136

5.6%

0.0%

0.6x

11.6x

CanWel Building Materials Group Ltd.

TSX:CWX

5.06

5.40

2.82

309

513

715

34

4.7%

8.8%

0.7x

15.2x

Bluelinx Holdings Inc.

NYSE:BXC

8.88

9.70

3.00

80

495

1,929

33

1.7%

(1.9%)

0.3x

15.2x

Hardwoods Distribution Inc.

TSX:HWD

14.23

15.02

11.47

303

327

468

30

6.4%

21.8%

0.7x

10.9x

Huttig Building Products Inc.

NASDAQCM:HBP

5.78

7.00

3.01

147

222

705

26

3.7%

8.5%

0.3x

8.6x

6.4%

6.4%

0.7x

12.1x

Median Retailers The Home Depot, Inc.

NYSE:HD

$128.68

$139.00

$109.62

$158,994

$175,919

$92,033

$14,566

15.8%

5.7%

1.9x

12.1x

Lowe's Companies, Inc.

NYSE:LOW

72.21

83.65

62.62

63,159

76,923

61,090

7,553

12.4%

5.6%

1.3x

10.2x

Tractor Supply Company

NASDAQGS:TSCO

67.35

97.25

66.77

9,002

9,073

6,510

809

12.4%

8.9%

1.4x

11.2x

Tile Shop Holdings, Inc.

NASDAQGS:TTS

16.55

21.05

11.67

853

870

319

62

19.5%

13.6%

2.7x

13.9x

14.1%

7.3%

1.7x

11.6x

Median Subsector Median

Footnotes: (1) LTM refers to the most recent twelve-month period for which data was available (2) Total enterprise value equals equity value plus minority interest, preferred stock and net debt; net debt equals total debt less cash and cash equivalents

Strictly Confidential | BlackArch Partners | 6

12.1x

Building Products & Infrastructure Industry Update | Q3 2016

Comparable Public Company Analysis ($ in Millions Except Per Share Amounts) Market Data Price Company

Ticker

9/30/2016

52-Week High

LTM Financial and Performance Data Equity

Low

Value

TEV

(2)

Revenue

EBITDA

(1)

Valuation Multiples

EBITDA

3 Yr. Revenue

Margin

CAGR %

TEV/LTM: Revenue

EBITDA

Engineering & Construction Services Engineering & Construction Skanska AB

OM:SKA B

$23.38

$23.60

$17.27

$9,570

$9,164

$17,358

$908

5.2%

3.5%

0.5x

10.1x

AECOM

NYSE:ACM

29.73

36.20

22.80

4,569

8,444

17,811

1,017

5.7%

29.7%

0.5x

8.3x

Fluor Corporation

NYSE:FLR

51.32

55.69

39.48

7,146

7,252

18,035

1,045

5.8%

(14.2%)

0.4x

6.9x

Jacobs Engineering Group Inc.

NYSE:JEC

51.72

55.89

34.76

6,280

6,216

11,441

679

5.9%

(0.1%)

0.5x

9.2x

SNC-Lavalin Group Inc.

TSX:SNC

39.26

44.54

27.79

5,898

5,467

7,065

545

7.7%

3.6%

0.8x

10.0x

Chicago Bridge & Iron Company N.V.

NYSE:CBI

28.03

46.39

26.12

2,892

4,769

11,414

1,010

8.8%

5.8%

0.4x

4.7x

EMCOR Group Inc.

NYSE:EME

59.62

60.33

40.98

3,625

3,710

7,379

402

5.4%

5.4%

0.5x

9.2x

Stantec Inc.

NYSE:STN

23.52

26.87

20.71

2,676

3,382

1,998

230

11.5%

15.5%

1.7x

14.7x

Tutor Perini Corporation

NYSE:TPC

21.47

25.98

10.16

1,056

1,763

4,935

195

3.9%

5.0%

0.4x

9.1x

KBR, Inc.

NYSE:KBR

15.13

19.94

11.61

2,156

1,383

4,284

222

5.2%

(17.2%)

0.3x

6.2x

5.8%

4.3%

0.5x

9.1x

Median Contractors & Homebuilders Lennar Corporation

NYSE:LEN

$42.34

$52.50

$37.14

$9,522

$15,770

$10,519

$1,293

12.3%

25.1%

1.5x

12.2x

DR Horton Inc.

NYSE:DHI

30.20

34.56

22.97

11,243

13,682

11,589

1,346

11.6%

26.4%

1.2x

10.2x

PulteGroup, Inc.

NYSE:PHM

20.04

22.40

14.61

6,886

9,456

7,237

976

13.5%

9.0%

1.3x

9.7x

Toll Brothers Inc.

NYSE:TOL

29.86

38.15

23.75

4,897

8,428

4,751

589

12.4%

28.1%

1.8x

14.3x

CalAtlantic Group, Inc.

NYSE:CAA

33.44

43.24

26.97

3,959

7,593

6,193

810

13.1%

52.3%

1.2x

9.4x

NVR, Inc.

NYSE:NVR

1,639.87

1,845.37

1,462.02

6,389

6,632

5,635

682

12.1%

12.8%

1.2x

9.7x

KB Home

NYSE:KBH

16.12

16.76

9.04

1,358

3,698

3,388

201

5.9%

18.1%

1.1x

18.4x

Meritage Homes Corporation

NYSE:MTH

34.70

41.33

25.48

1,389

2,374

2,942

247

8.4%

21.3%

0.8x

9.6x

MDC Holdings Inc.

NYSE:MDC

25.80

28.93

19.28

1,265

2,027

2,042

125

6.1%

10.8%

1.0x

16.2x

M/I Homes, Inc.

NYSE:MHO

23.57

25.48

15.56

581

1,209

1,637

118

7.2%

19.8%

0.7x

10.2x

11.9%

20.6%

1.2x

10.2x

Median

Installation Services TopBuild Corp.

NYSE:BLD

$33.20

$38.94

$23.02

$1,276

$1,363

$1,700

$133

7.8%

0.0%

0.8x

10.3x

Installed Building Products, Inc.

NYSE:IBP

35.87

38.97

17.60

1,129

1,279

777

88

11.3%

28.2%

1.6x

14.6x

Comfort Systems USA Inc.

NYSE:FIX

29.31

35.00

24.22

1,088

1,089

1,626

125

7.7%

6.6%

0.7x

8.7x

7.8%

6.6%

0.8x

10.3x

Median Subsector Median

Footnotes: (1) LTM refers to the most recent twelve-month period for which data was available (2) Total enterprise value equals equity value plus minority interest, preferred stock and net debt; net debt equals total debt less cash and cash equivalents

Strictly Confidential | BlackArch Partners | 7

9.7x

Building Products & Infrastructure Industry Update | Q3 2016

Precedent Transaction Analysis Announced Date

Target

Acquiror

Target Description

Building Products American Bath Group, LLC designs and manufactures bathtubs and showers.

Sep-16

American Bath Group, LLC

Lone Star Funds

Sep-16

The Delaney Co.

HCI Equity Partners

Sep-16

European Panel Company S.A. (EPCO)

The Riverside Company

Sep-16

SES Foam, LLC

Tenex Capital Management

Sep-16

Tesla Digital, Inc.

CEN Biotech, Inc.

Sep-16

United Copper Industries, Inc.

Southwire Company, LLC

Sep-16

US Impact Systems, Inc.

CGI Windows & Doors, Inc.

Sep-16

Westfield Lighting Co. Inc.

Ferguson Enterprises, Inc.

Aug-16

Breezeway

JELD-WEN, Inc.

Aug-16

Dectron Internationale Inc.

Specified Air Solutions LLC

Aug-16

Door Engineering and Manufacturing, LLC

Senneca Holdings

Aug-16

Fleuron Enterprises, Inc.

Rowley Company, LLC

Fleuron Enterprises, Inc. manufactures and sells drapery hardware products.

Aug-16

Krestmark Industries, L.P.

Headwaters Incorporated

Krestmark Industries, L.P. manufactures vinyl windows.

Aug-16

Riobel Inc and ROHL LLC

Fortune Brands Home & Security, Inc.

Riobel Inc and ROHL LLC manufacture and market bath fittings.

Aug-16

Ruffin Building Systems, Inc.

Mueller, Inc.

Aug-16

Sina Pearson Textiles, Inc.

Momentum Textiles, LLC

Aug-16

Solarfective Products Limited

Legrand North America, Inc.

Jul-16

American Builders & Contractors Supply Co., Inc., Everlast Polymeric Cladding System

Chelsea Building Products, Inc.

Jul-16

E. O. Wood Company Inc.

Distribution International, Inc.

Jul-16

ESSMANN-Gruppe

Kingspan Group plc

Jul-16

Excalibur Extrusions, Inc., Plastic Pipe Division

VIP Rubber Company, Inc.

Strictly Confidential | BlackArch Partners | 8

The Delaney Co. manufactures residential and commercial door locks, builder's hardware, bath accessories and door hinges. EPCO manufactures sandwich panels for residential, commercial and industrial overhead doors. SES Foam, LLC manufactures spray foam insulations for homeowners, design professionals and contractors. Tesla Digital, Inc. designs, develops, tests and manufactures cold light LED technology. United Copper Industries, Inc. manufactures and distributes copper building wires and cables used in building construction. US Impact Systems, Inc. manufactures fabricated storefront window and door products. Westfield Lighting sells and distributes lighting accessories and furniture items. Breezway manufactures residential and commercial louvre window systems. Dectron Internationale Inc. manufactures engineered indoor air quality (IAQ) and HVAC products and services. Door Engineering designs and manufactures customized industrial, commercial, aviation and specialty doors.

Ruffin Building Systems, Inc. manufactures and supplies preengineered metal building systems and components. Sina Pearson Textiles, Inc. designs, manufactures and distributes upholstery textiles. Solarfective Products Limited manufactures roller shades, skylights and projection screens. Everlast Polymeric Cladding System comprises the brand and distribution rights related to a PVC composite siding. E. O. Wood Company Inc. manufactures and markets commercial, mechanical and industrial insulation products. ESSMANN-Gruppe manufactures industrial skylights and ventilation, smoke extraction and water drainage systems. Excalibur Extrusions, Inc., Plastic Pipe Division manufactures plastic pipes.

Building Products & Infrastructure Industry Update | Q3 2016

Precedent Transaction Analysis Announced Date

Target

Acquiror

Target Description

Spell Capital Partners LLC; Salt Creek Capital II,

Griplock Systems designs and provides cable suspension hardware

LLC; Ocean Avenue Capital Partners, L.P.

and low-voltage products for LED systems.

Jul-16

Griplock Systems, Inc.

Jul-16

Infinity Woven Products

Twitchell Corporation

Jul-16

Nortek Inc.

Melrose Industries PLC

Jul-16

O&S Doors Ltd

Sun European Partners, LLP

Jul-16

Reilly Windows & Doors

Pella Corporation

Jul-16

Thermo Automation Canada Ltd

Convergint Technologies LLC

Infinity Woven Products manufactures and distributes floor and wall coverings. Nortek, Inc. manufactures cooling and heating systems for residential and commercial applications. O&S Doors Ltd. designs and manufactures doors for residential use. Reilly Windows & Doors makes and installs windows, doors, screens and shutters for residential and commercial projects. Thermo Automation Canada Ltd develops and supplies systems that integrate heating, cooling, security and lighting.

Building Materials Sep-16

Cemex Construction Materials Atlantic, LLC, Fairborn Cement Plant and Related Assets

Eagle Materials Inc.

The Fairborn Cement Plant and Related Assets comprise a grinding plant and distribution terminal.

Sep-16

Polycor Inc.

TorQuest Partners

Sep-16

Swenson Granite Company LLC

Polycor Inc.

Aug-16

Absolute Coatings Inc

Valentus Specialty Chemicals, Inc.

Absolute Coatings Inc manufactures wood floor finishes.

Aug-16

C & A Paving Co., Inc.

Clements Concrete Co

C & A Paving Co., Inc. manufactures asphalt and paving products.

Aug-16

Continental Timber Company, Inc.

Conner Industries, Inc.

Continental Timber Company supplies SYP/SPF wood products in the Midwest United States.

Aug-16

Hardin Industries, Inc.

Millstone Capital Advisors, LLC

Hardin Industries, Inc. designs and manufactures custom generator set enclosures.

Aug-16

HeidelbergCement, U.S. Plants

Argos USA Corporation

The HeidelbergCement U.S. Plants include a cement plant and eight related terminals.

Aug-16

Jenna Concrete Corporation

U.S. Concrete, Inc.

Jenna Concrete Corporation produces ready-mix concrete.

Aug-16

Kings Ready Mix Inc.

U.S. Concrete, Inc.

Kings Ready Mix Inc. manufactures ready-mixed concrete.

Aug-16

Sensus Worldwide Limited

Xylem Inc.

Aug-16

Total Forest Industries Ltd.

CanWel Building Materials Group Ltd.

Jul-16

Granite City Tool Company, Inc.

GranQuartz, L.P.

Jul-16

Ovivo Inc.

SKion Water International GmbH

Jul-16

Utility Partners, LLC

H2O Innovation USA Holding Inc.

Strictly Confidential | BlackArch Partners | 9

Polycor Inc. produces natural stone products. Swenson Granite Company LLC engages in quarrying and cutting granite.

Sensus Worldwide Limited is a provider of smart meters, network technologies and data analytics services for the utilities industry. Total Forest Industries Ltd. manufactures and supplies pressure treated wood to independent lumber dealers. Granite City Tool Company, Inc. manufactures and distributes stone tools for the stone industry. Ovivo Inc. provides water and wastewater treatment equipment, technology and systems. Utility Partners, LLC maintains sewer pump stations transporting waste water to local treatment plants for processing.

Building Products & Infrastructure Industry Update | Q3 2016

Precedent Transaction Analysis Announced Date

Target

Acquiror

Target Description

Distribution & Retail All Glass & Windows is a provider of impact-resistant glass and

Sep-16

All Glass & Windows Holdings, Inc.

Prospect Partners, LLC

Sep-16

Fortiline LLC

MORSCO Inc.

Sep-16

Howco Distributing Co. Inc.

Drone USA, Inc.

Sep-16

Olympia Building Supplies, LLC

GMS Inc.

Aug-16

Dawson's, Inc.

W.E. Aubuchon Co., Inc.

Aug-16

Image Design Solutions, LLC

United Subcontractors, Inc.

Aug-16

Keene Lumber Company, Inc.

Standard Companies, Inc.

Aug-16

L&W Supply Corporation

American Builders & Contractors Supply Co., Inc.

L&W Supply Corporation distributes gypsum wallboards and building materials.

Aug-16

Monroe Aluminum Products, Inc.

SRS Distribution, Inc.

Monroe Aluminum Products, Inc. supplies exterior building products.

Aug-16

Nagle Lumber Company

Alexander Lumber Co.

Nagle Lumber Company supplies lumber products.

Aug-16

National Roofing Supplies Inc.

SRS Distribution, Inc.

Aug-16

Small's Hardware Inc.

Acme Lock Inc.

Aug-16

Steven Kempf Building Material Company

GMS Inc.

Steven Kempf Building Material Company distributes building materials to professional building contractors.

Jul-16

Alltemp Products Co. Ltd.

DiversiTech Corporation

Alltemp Products Co. Ltd. distributes HVAC parts.

Jul-16

RockWise, LLC

GMS Inc.

RockWise, LLC distributes building materials to customers in Arizona.

Jul-16

Superior Plus, Construction Products Distribution Business

Strictly Confidential | BlackArch Partners | 10

Foundation Building Materials, LLC

glass-related products for general contractors and builders. Fortiline LLC distributes underground water, sewer and storm utility products. Howco Distributing Co. Inc. supplies construction, transportation and heavy equipment parts. Olympia Building Supplies, LLC distributes a variety of drywall, insulation and other building products. Dawson's, Inc. owns and operates hardware stores. Image Design Solutions, LLC, owns and operates building supplies stores. Keene Lumber Company, Inc. distributes building materials for residential and commercial markets.

National Roofing Supplies, Inc. distributes residential and commercial roofing products and other building materials. Small's Hardware Inc. operates hardware stores in Cheviot, Harrison, Lockland, and Cincinnati, Ohio.

Superior Plus's Construction Products Distribution business distributes specialty construction products.

Building Products & Infrastructure Industry Update | Q3 2016

Precedent Transaction Analysis Announced Date

Target

Acquiror

Target Description

Engineering & Construction Services Sep-16

All Glass Co., Inc.

Private Buyer

All Glass Co., Inc. provides glass installation services.

Sep-16

CCI Group Inc.

Signal Hill Equity Partners

CCI Group provides engineering and consultation services.

Sep-16

City Elevator Company

KONE Oyj

Sep-16

Sep-16

Dream Builders, LLC and 4.5% stake in Dream Homes Ltd. Dunk Fire & Security, Inc., Central Arkansas Business

The Virtual Learning Company, Inc.

State Systems, Inc.

Sep-16

Groom Energy Solutions LLC

DK Energy US LLC

Sep-16

Groupe Sirois Gestion Parasitaire Inc.

Maheu & Maheu Inc

Sep-16

Hart's Home Services, Inc.

Performance Air Conditioning Services, Inc.

Sep-16

M.B. Roofing Systems, Inc. (nka:Tecta America Columbus)

City Elevator Company provides elevator maintenance, modernization and installation services. Dream Builders, LLC and Dream Homes Ltd. construct and renovate residential properties. The Central Arkansas Business of Dunk Fire & Security, Inc. provides fire sprinkler and alarm system installation services. Groom Energy Solutions LLC provides commercial and industrial energy solutions in the United States. Groupe Sirois Gestion Parasitaire Inc. provides extermination and pest management services. Hart's Home Services, Inc. provides electrical and air conditioning services to homeowners.

Tecta America Corp.

Tecta America Columbus provides roofing services.

Naismith Engineering, Inc. operates as an engineering firm.

Sep-16

Naismith Engineering, Inc.

Hanson Professional Services Inc.

Sep-16

Raasch Associates Inc

I & S Group, Inc.

Sep-16

Refrigeration Solutions, Inc.

Source Refrigeration & HVAC, Inc.

Sep-16

Seven Sisters, Incorporated

JH Kelly, LLC

Sep-16

Steven Feller P.E., PL

Yenni Capital, Inc.; Braga Investment & Advisory

Sep-16

Verengo Inc.

Angeleno Group, LLC; CPF Asset Management; Crius Energy Corporation; ClearSky Funding I LLC

Verengo Inc. installs solar photovoltaic systems.

Sep-16

Vulkan Retail Co., S.A. de C.V.

Array Marketing Group, Inc.

Vulkan Retail Co., S.A. de C.V. develops and produces retail space solutions for various brands.

Sep-16

WCI Communities Inc.

Lennar Corporation

Sep-16

Westlake Reed Leskosky (nka:DLR Group|Westlake Reed Leskosky)

DLR Group KKE

Westlake Reed Leskosky provides architectural services.

Sep-16

Wilson Parker Homes Inc.

DR Horton Inc.

Wilson Parker Homes Inc. operates as a home building company.

Sep-16

WSA Systems-Boca, Inc.

Sciens Building Solutions, LLC

Sep-16

XP Solutions Inc.

EQT Partners AB

Strictly Confidential | BlackArch Partners | 11

Raasch Associates Inc. provides architectural and engineering design services. Refrigeration Solutions, Inc. provides commercial and industrial refrigeration and related services. Seven Sisters, Incorporated provides electrical contracting services. Steven Feller P.E., PL provides HVAC, electrical, plumbing, fire and life safety systems and peer review services.

WCI Communities, Inc. operates as a community developer and luxury homebuilder.

WSA Systems-Boca, Inc. provides security and fire systems integration services. XP Solutions Inc. provides drainage and flood hazard software for the civil engineering and environmental sectors.

Building Products & Infrastructure Industry Update | Q3 2016

Precedent Transaction Analysis Announced Date

Target

Acquiror

Target Description

Aug-16

Archadeck Outdoor Living

Private Buyer

Archadeck Outdoor Living provides deck and porch contracting services.

Aug-16

Blackbird Design Studio, LLC

Helix Architecture & Design, Inc.

Blackbird Design Studio, LLC provides architectural design services.

Aug-16

DBi Services, LLC

Sterling Partners

Aug-16

Edwards & Zuck, D.P.C.

Stantec Inc.

Edwards & Zuck, D.P.C. operates as a mechanical, electrical, and plumbing consulting engineering company.

Aug-16

FireClass, L.L.C.

Installed Building Products, Inc.

FireClass, L.L.C. distributes, installs and services fireplaces.

Aug-16

HTS New England

Stebbins-Duffy, Inc.

Aug-16

Jansen Strawn Consulting Engineers, Inc.

Ware Malcomb, Inc.

Jansen Strawn Consulting Engineers, Inc. provides engineering services to the real estate development industry.

Aug-16

Johnson Concrete

Broughton Construction LLC

Johnson Concrete provides concrete construction services.

Aug-16

Major Contractors, Inc.

Private Buyer

Major Contractors, Inc. operates as an electrical site service contractor.

Aug-16

Maxim Construction Group, Corp.

The Falcon Group

Maxim Construction Group, Corp. provides general contracting services.

Aug-16

Mazzetti Inc.

GBA Inc.

Aug-16

Nexxus Solutions Group, LLC

Worley Catastrophe Response, L.L.C.

Aug-16

Outdoor Lighting Perspectives of Northern NJ, LLC

Private Buyer

Aug-16

Process Power & Control, Inc.

Loenbro, Inc.

Aug-16

ROC Geotechnical Consulting Engineers, PLLC

Terracon Consultants, Inc.

Aug-16

San-Con Industries, Inc.

Marietta Silos LLC

DBi Services, LLC provides infrastructure maintenance, operations and management solutions.

HTS New England provides custom HVAC solutions for the commercial, institutional and industrial sectors.

Mazzetti Inc. provides MEPT engineering, equipment planning, sustainability and commissioning services. Nexxus Solutions Group, LLC provides emergency repairs, construction and remodeling services for homeowners. Outdoor Lighting Perspectives of Northern NJ, LLC provides outdoor landscape and architectural lighting services. Process Power & Control, Inc. operates as an electrical contractor specializing in industrial electrical services. ROC Geotechnical Consulting Engineers, PLLC provides geotechnical engineering consulting services. San-Con Industries, Inc. specializes in the construction of silos and stacking tubes for the storage of bulk materials.

The Terminix International Company

Sandwich Isle Pest Solutions, Inc. provides pest control services for

Limited Partnership

residential and commercial clients.

Aug-16

Sandwich Isle Pest Solutions, Inc.

Aug-16

Southern Foam & Coating, Inc.

United Subcontractors, Inc.

Southern Foam and Coating, Inc. operates as a full line insulation contractor.

Aug-16

Southern Insulators & Specialties, LLC

Installed Building Products, Inc.

Southern Insulators & Specialties, LLC provides installation services related to fiberglass and spray foam insulation.

Aug-16

SofTech, Inc., PLM Product Line

Essig Research, Inc.

Aug-16

Tecta America Corp.

ONCAP; Oncap III, L.P.

Tecta America Corp. operates as a commercial roofing contractor.

Aug-16

Valley Insulation, Inc.

TopBuild Corp.

Valley Insulation, Inc. provides insulation services to homes and businesses.

Strictly Confidential | BlackArch Partners | 12

SofTech, Inc., PLM Product Line provides product lifecycle management (PLM) solutions.

Building Products & Infrastructure Industry Update | Q3 2016

Precedent Transaction Analysis Announced Date

Target

Acquiror

Target Description Wally's Refrigeration, LLC provides commercial refrigeration and ice machine services.

Aug-16

Wally's Refrigeration, LLC

Integrated Facility Services, Inc.

Aug-16

W. J. Maloney Plumbing Co., Inc.

Hayes Mechanical, Inc.

Aug-16

Yes Communities, Inc.

GIC Pte. Ltd.

Jul-16

5 Star Security, Inc.

Select Security, Inc.

Jul-16

All-Green Turf Management, Corp.

Rahn Contracting LLC

Jul-16

Applied Polymerics, Inc.

Universal Sealants (UK) Limited

Jul-16

Athalye Consulting Engineering Services, Inc.

TranSystems Corporation

Jul-16

Bebco Industries Inc.

Parkline, Inc.

Jul-16

BGL Corporation

Environmental Compliance Services, Inc.

Jul-16

CJ Roofing Co

Elite Roofing LLC

Jul-16

Coym, Rehmet, and Gutierrez Engineering, L.P.

LJA Engineering, Inc.

Jul-16

De Angelis Construction Inc.

STC Construction Group Inc.

De Angelis Construction Inc. operates as a full-service contractor.

Jul-16

Evergreen Basement Systems, Inc.

JES Construction, Inc.

Evergreen Basement Systems, Inc. operates as a basement waterproofing and foundation repair contractor in Virginia.

Jul-16

Forum Design, Inc.

Ankrom Moisan Architects, Inc.

Jul-16

Foster and Associates Inc.

Arc Surveying & Mapping, Inc.

Jul-16

Hankins & Anderson, Inc.

Mason & Hanger Corporation

Jul-16

Mohlin & Company

CES, Inc.

Mohlin & Company operates as a consulting engineering company.

Jul-16

Royal Flush Plumbing, Inc.

Greenstar Home Services Inc.

Royal Flush Plumbing, Inc. provides plumbing services.

Jul-16

SECCO, Inc., Commercial Mechanical Division

Enginuity LLC

The Commercial Mechanical Division of SECCO, Inc. provides commercial heating, air conditioning and refrigeration services.

Jul-16

Tri-State Engineering, Inc. (nka:Tri-State Engineering, a division of Olsson Associates)

Olsson Associates, Inc.

W. J. Maloney Plumbing Co., Inc. provides plumbing services for commercial and residential clients. Yes Communities, Inc. develops, sells, operates and leases manufactured home communities. 5 Star Security, Inc. installs and maintains surveillance cameras and burglar and fire alarms for residential purposes. All-Green Turf Management, Corp. provides commercial landscape services. Applied Polymerics, Inc. provides contracting services to local Department of Transportation and municipalities. Athalye Consulting Engineering Services, Inc. provides construction support services. Bebco Industries Inc. designs, manufactures and markets portable modular buildings for use in industrial environments. BGL Corporation provides remedial construction, petroleum system construction and storage tank construction services. CJ Roofing Co provides roofing contracting services. Coym, Rehmet, and Gutierrez Engineering, L.P. provides engineering and surveying services.

Forum Design, Inc. provides interior designing and architecture services. Foster and Associates Inc. provides surveying and engineering services. Hankins & Anderson, Inc. designs mission critical facilities for the federal government.

Tri-State Engineering provides engineering services for roadways, bridges and water supply.

Jul-16

TrueNet Communications, Inc.

Fujitsu Network Communications Inc.

TrueNet Communications, Inc. operates as an infrastructure, engineering and specialty contracting company.

Jul-16

Vantem Modular, LLC

AAR Manufacturing, Inc.

Vantem Modular, LLC designs and manufactures foldable, portable and prefabricated building structures.

Strictly Confidential | BlackArch Partners | 13

INDUSTRY INDICATORS TOTAL HOUSING STARTS

BUILDING PERMITS

(Annual Starts in Thousands)

(Number of Housing Units in Thousands) 250

US Population 179.3 (millions)

203.2

226.5

226.5

248.7

281.4

318.4

2,500 2,500

200 Average Housing Starts (1960–2015): 1,442

2,000 2,000

150

1,500 1,500 100

1,000 1,000 50

500 500

Source: U.S. Department of Commerce

Source: U.S. Department of Commerce

TOTAL HOME SALES (Seasonally Adjusted Annual Home Sales in Thousands) 6,500

NEW HOME INVENTORY (Houses for Sale) 600

(Months of Supply) 14

12

500

6,000

10

400

5,500

8

300

5,000

6

200

4,500 4,000

Existing Homes Sold

New Homes Sold

Source: U.S. Department of Commerce, National Association of Realtors

STRICTLY CONFIDENTIAL

2016

2015

2014

2013

2012

2011

2010

2009

2008

1960 1965 1965 1970 1970 1975 1975 1980 1980 1985 1960 1985 1990 1990 1995 1995 2000 2000 2005 2005 2010 2010 2015 2015

2007

2006

0

00

4

100

2

0

0

Houses for Sale at EOM

Months of Supply

Source: U.S. Department of Commerce

| 14

INDUSTRY INDICATORS (CONT.) CONSTRUCTION SPENDING BY TYPE

THE LIRA REMODELING ACTIVITY INDICATOR

($ in Billions)

(As of October 2016; $ in Billions)

$800

$350

$700

$300

$600

$250

$500

$200

10%

$400

$150

5%

$300

$100

$200

$50

(10%)

$100

$0

(15%)

Residential

Nonresidential Buildings

Source: U.S. Department of Commerce

($ in Billions) $463

$500 $400

$500

$390

$450

$432

$300

$200

20% 15%

0% (5%)

Four-Quarter Moving Rate of Change

Source: Joint Center for Housing Studies

NON-RESIDENTIAL BUILDING CONSTRUCTION (2006-2020P) $600

25%

Four-Quarter Moving Total in Billions

Nonresidential, Nonbuilding

30%

$348 $337 $355 $360

$389

$477

$504

$567 $527 $549

NON-RESIDENTIAL BUILDING CONSTRUCTION BY TYPE ($ in Billions) $140 $120 $100 $80 $60 $40 $20 $0

$100 $0

Source: FMI’s Construction Outlook

STRICTLY CONFIDENTIAL

Communication

Lodging

Office

Commercial

Healthcare

Transportation

Manufacturing

Amusement & Rec.

Source: U.S. Department of Commerce

| 15