December 16, 2014

The CapStreet Group Announces the Sale of Distribution International

HOUSTON,  TEXAS (December 16,  2014) – The CapStreet Group (“CapStreet”) today announced it has completed the sale of its investment in portfolio company Distribution International Holdings, LLC (“Distribution International”, “DI” or “the Company”) to Advent International (“Advent”). Distribution International is a leading fabricator and distributor of a comprehensive range of mechanical insulation and related products to industrial and commercial end markets throughout North America.

“It has been a pleasure working with the management team as DI has been built into a national platform” said Paul De Lisi, a Partner at The CapStreet Group. “Celeste and the entire DI team have been extraordinarily effective executing the Company’s strategic growth plan, which included numerous add on acquisitions and a wide range of pricing, operational, and procurement initiatives. As a result, DI had grown to be the largest distributor of industrial insulation in North America, and we wish the management team continued success under new ownership.”

“CapStreet has been a great partner to DI,” said Celeste Mastin, CEO of DI. “CapStreet’s expertise in industrial distribution and the chemical and refining end markets was critical as we were managing rapid growth. They have been a true asset to the business and will be missed going forward.”

Because of its Houston roots, CapStreet has been particularly active in the industrial distribution and service sectors, successfully partnering with companies and management teams to execute buy and build strategies, optimize operations, and facilitate market leading organic growth. Other representative investments in the industrial distribution sector include GHX, a leading value added distributor of gaskets and hoses, The Eads Company, a provider of engineered flow control and instrumentation products, and T.F. Hudgins, a provider of engineered products and services to improve the reliability, efficiency, and performance of compressors, engines, and other industrial machinery.

Harris Williams & Co. advised DI. Kirkland & Ellis LLP served as legal counsel to DI, and Weil, Gotshal & Manges served as legal counsel to Advent.

About Distribution International
DI is a value added distributor of insulation, related specialty fabricated products, and accessory supplies in North America. Based in Houston, the company has 64 branch locations and provides its customers with mission critical products and services across the commercial building, chemicals, energy, power, railcar and marine end markets. For more information, visit www.distributioninternational.com.

About The CapStreet Group
The CapStreet Group is a Houston, Texas based private equity firm founded in 1990 that invests in owner managed, lower middle market companies headquartered in Texas and surrounding states, with a particular emphasis on companies headquartered in the greater Houston area. CapStreet targets companies operating in the industrial distribution, industrial manufacturing and business service sectors and partners with management to accelerate growth and improve profitability. For more information, visit The CapStreet Group website, www.capstreet.com.