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BUILDING PRODUCTS & MATERIALS

0

INDUSTRY UPDATE │ MARCH 2015

PAGE |

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DEAL SPOTLIGHT

1

CONTENTS

WHAT WE’RE READING

PUBLIC MARKETS

PUBLIC COMPARABLES

M&A ACTIVITY

CONTACTS

Mike HoganManaging Directormhogan@harriswilliams.com

+1 (804) 915-0104

Ryan NelsonManaging Directorrnelson@harriswilliams.com

+1 (804) 915-0121

INTRODUCTION

Harris Williams & Co. is pleased to present our Building Products & Materials IndustryUpdate for March 2015. This report provides commentary and analysis on currentcapital market trends and merger and acquisition dynamics within the globalbuilding products and materials industry.

We hope you find this edition helpful and encourage you to contact us directly ifyou would like to discuss our perspective on current industry trends and M&Aopportunities or our relevant industry experience.

BUILDING PRODUCTS & MATERIALS

INDUSTRY UPDATE │ MARCH 2015

OUR PRACTICE

Harris Williams & Co. is a leading advisor to the building products and materialsindustry. Our significant experience covers a broad range of end markets,industries, and business models.

Construction

Materials

Building

Products

Distribution &

Services

has been acquired by

a portfolio company of

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

a subsidiary of

has been acquired by

Select Atlanta,

Georgia

aggregates assets

of LaFarge SA have

been acquired by

has been acquired by

a division of

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

Aggregates

Asphalt

Aluminum

Bricks

Clay

Glass

Precast Concrete / Ready Mix

Steel

Stone

Acoustical

Cabinets &

Countertops

Carpet and Flooring

Gypsum / Wallboard

Electrical Fixtures

HVAC

Lumber

Plumbing Fixtures

Roofing

Siding

Tools and Hardware

Windows & Doors

Architectural and

Engineering

Installation and

Contracting

Lumber and

Hardware

Plumbing

Roofing and Siding

Site Development

Wallboard

Construction

MaterialsBuilding Products

Distribution &

Services

has been acquired by

a portfolio company of

has been acquired by

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

a division of

a portfolio company of

has been acquired by

a subsidiary of

has been acquired by

PAGE |

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WHAT WE’RE READING

2

SUPPLY-ORIENTED CONCERNS TOP BUILDERS’ LISTS IN 2015

CONCRETE OPTIMISM

U.S. FORECLOSURES FALL TO LOWEST RATE SINCE JULY 2006

BUILDER CONFIDENCE DROPS TWO POINTS IN MARCH

Builder Online 3/5/2015

As the recovery strengthens and becomes more focused on housing, supply issues are replacing the broader andmore general concerns about the economy. In 2011 and 2012, about 4-in-5 builders were concerned abouthomeowners' ability to sell their homes but the intensity fell to about 2-in-5 expressing that concern in 2015. Concernabout employment and general economic conditions also was highest in 2011 and 2012, but sank to seventh mostrecently; still a concern but not as heightened as earlier. Leading concerns now are supply oriented. Over two-thirdsof the builders responding listed the availability of labor as their greatest concern for 2015; building materials pricesfollow closely with two-thirds listing it as an expected problem, and lot availability tops out with 57%.

Read the full article here.

Concrete Construction 2/17/2015

“World of Concrete this year is unlike any World of Concrete I’ve been to in the last decade,” said Ed Sullivan, chiefeconomist and group vice president with the Portland Cement Association (PCA). “There is a big broad burst ofoptimism that has been absent the last decade.”… We are seeing the healing of the deep wounds we saw during therecession,” he said, adding that U.S. gross domestic product will increase 3.2% this year. Sullivan specificallyanticipates portland cement consumption will increase 8% each of the next two years, from just over 80 million metrictons all the up to 120 million metric tons by 2019.

Read the full article here.

Reuters 3/19/2015

Foreclosure activity in the United States fell last month to the lowest rate in nearly nine years as banks started theprocess on fewer homes and scheduled fewer auctions than in the previous month, industry firm RealtyTrac said onThursday. A total of 101,938 properties across the United States were at some stage of the foreclosure process, whichincludes foreclosure notices, scheduled auctions and bank repossessions, the group said. That drove overallforeclosure activity down 4.3% from January and down 9.4% from the same time last year.

Read the full article here.

National Association of Home Builders 3/6/2015

Builder confidence in the market for newly built, single-family homes in March fell two points to a level of 53 on theNational Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. “Even with this slightslip, the HMI remains in positive territory and we expect the market to improve as we enter the spring buying season,”said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. “The drop in builder confidence is largelyattributable to supply chain issues, such as lot and labor shortages as well as tight underwriting standards,” said NAHBChief Economist David Crowe.

Read the full article here.

INDUSTRY UPDATE │ MARCH 2015

AS CONSTRUCTION DEMAND SPIKES IN U.S., SO DO MATERIAL COSTS

World Property Journal 3/13/2015

"Leasing momentum is boosting construction demand across multiple commercial property sectors--but raw materialand labor costs are making it more expensive to get out of the ground than ever before," said Todd Burns, President,JLL Project and Development Services, Americas. "Demand is exploding, but demand isn't everything. You have toconsider the bottom line of every project to make sure it makes economic sense short- and long-term."Affirming rising demand, the American Institute of Architects' Consensus Construction Forecast projects that spendingon non-residential construction is expected to rise 7.7% in every commercial property sector this year.

Read the full article here.

BUILDING PRODUCTS AND MATERIALS

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PUBLIC MARKETS

3

MEDIAN TEV / 2015 EBITDA

MEDIAN REVENUE GROWTH (2014 – 2015P)

MEDIAN EBITDA MARGIN (2013 – 2015P) MEDIAN EBITDA GROWTH (2014E-2015P)

MEDIAN CAPEX / REVENUE (2015E)

MEDIAN REVENUE GROWTH (2011 – 2014)

BUILDING PRODUCTS & MATERIALS

INDUSTRY UPDATE │ MARCH 2015

HISTORICAL STOCK PRICES (MARCH 16TH, 2010 - MARCH 16TH, 2015)

8.5%

8.9%

7.9%

Building Products Distributors

Building Products

Building Materials

9.8%

8.0%

9.9%

Building Products Distributors

Building Products

Building Materials

4.3%

12.8%

17.2%

Building Products Distributors

Building Products

Building Materials

18.4%

19.8%

23.6%

Building Products Distributors

Building Products

Building Materials

0.9%

2.7%

6.2%

Building Products Distributors

Building Products

Building Materials

9.9x

10.8x

10.0x

Building Products Distributors

Building Products

Building Materials

(60%)

(40%)

(20%)

0%

20%

40%

60%

80%

100%

120%

140%

Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15

Building Materials Index Building Products Index Building Products Distributors Index S&P 500 Index

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PUBLIC COMPARABLES

4

As of March 19, 2015 ($ in Millions, except per share amounts)

BUILDING MATERIALS

BUILDING PRODUCTS & MATERIALS

INDUSTRY UPDATE │ MARCH 2015

Stock Performance

Current % of 2014 TEV / EBITDA

Price LTM High Mkt Cap TEV Revenue EBITDA Margin 2015 2016

Aggregates and Cement

Holcim Ltd. $76.38 88.1% $24,890 $37,310 $19,238 $3,755 19.5% 9.4x 8.3x

CRH plc $25.78 95.2% 20,956 23,772 $22,892 $1,912 8.4% 10.8x 9.1x

Lafarge S.A. $66.23 91.7% 19,039 31,043 $15,546 $3,146 20.2% 9.6x 8.6x

HeidelbergCement AG $77.25 97.6% 14,516 23,835 $16,363 $2,936 17.9% 8.8x 8.0x

CEMEX, S.A.B. de C.V. $0.93 80.3% 11,624 27,903 $14,228 $2,482 17.4% 9.4x 8.1x

Vulcan Materials Company $84.20 97.6% 11,123 12,988 $2,994 $575 19.2% 15.8x 12.5x

Martin Marietta Materials Inc. $138.68 94.8% 9,320 10,798 $2,679 $588 22.0% 12.4x 10.5x

Eagle Materials Inc. $79.98 75.7% 4,021 4,525 $1,032 $284 27.5% 9.9x 8.1x

Median 87.6% 20.6% 11.2x 9.3x

Mean 87.1% 21.5% 11.9x 9.8x

Heavy Construction Materials

CRH plc $25.78 95.2% $20,956 $23,772 $22,892 $1,912 8.4% 10.8x 9.1x

James Hardie Industries plc $11.60 99.2% 5,125 5,432 $1,622 $348 21.5% 13.1x 10.9x

Boral Limited $4.79 100.0% 3,722 4,398 $3,643 $335 9.2% 9.7x 8.7x

Headwaters Incorporated $17.50 98.0% 1,290 1,751 $825 $134 16.2% 10.6x 9.6x

U.S. Concrete, Inc. $33.81 98.9% 473 663 $704 $70 9.9% 7.6x 6.3x

Median 98.6% 12.7% 10.7x 9.4x

Mean 98.1% 13.8% 11.1x 9.6x

Lumber and Wood Products

Weyerhaeuser Co. $33.89 91.5% $17,792 $21,628 $7,403 $1,722 23.3% 11.7x 10.5x

West Fraser Timber Co. Ltd. $49.56 80.4% 4,139 4,487 $3,330 $497 14.9% 6.8x 5.7x

Canfor Corp. $19.83 79.2% 2,685 2,990 $2,891 $442 15.3% 5.4x 4.5x

Louisiana-Pacific Corp. $16.22 91.3% 2,309 2,538 $1,935 $16 0.8% 18.4x 7.9x

Boise Cascade Company $37.61 85.7% 1,485 1,623 $3,574 $196 5.5% 7.3x 6.3x

Norbord, Inc. $20.52 86.6% 1,098 1,469 $1,198 $89 7.4% 8.6x 4.2x

Universal Forest Products Inc. $52.71 90.7% 1,053 1,153 $2,660 $130 4.9% 7.4x 6.8x

Ainsworth Lumber Co. Ltd. $2.71 86.2% 652 879 $383 $17 4.4% 13.7x 6.8x

Median 86.6% 7.4% 7.4x 6.3x

Mean 86.5% 14.8% 8.0x 6.6x

Overall Median 91.5% 16.2% 9.7x 8.3x

Overall Mean 90.5% 14.7% 10.3x 8.3x

PAGE |

PUBLIC COMPARABLES

5

BUILDING PRODUCTS

BUILDING PRODUCTS & MATERIALS

INDUSTRY UPDATE │ MARCH 2015

Stock Performance

Current % of 2014 TEV / EBITDA

Price LTM High Mkt Cap TEV Revenue EBITDA Margin 2015 2016

ASSA ABLOY AB $58.64 99.1% $21,747 $23,970 $7,265 $1,315 18.1% 16.8x 15.6x

Mohawk Industries Inc. $179.87 95.5% 13,132 15,292 $7,803 $1,161 14.9% 11.2x 9.9x

Masco Corporation $26.27 95.9% 9,183 11,122 $8,521 $1,003 11.8% 10.0x 9.1x

Fortune Brands Home & Security, Inc. $45.08 93.6% 7,178 7,659 $4,014 $498 12.4% 12.6x 10.8x

Lennox International, Inc. $109.46 99.7% 4,890 5,779 $3,367 $387 11.5% 12.6x 11.1x

Owens Corning $39.72 90.0% 4,697 6,690 $5,276 $717 13.6% 8.7x 7.8x

USG Corporation $26.28 77.3% 3,807 5,693 $3,724 $454 12.2% 9.7x 8.2x

Kingspan Group plc $19.49 98.8% 3,360 3,530 $2,289 $229 10.0% 13.4x 12.1x

Armstrong World Industries, Inc. $56.29 94.0% 3,103 3,972 $2,515 $313 12.5% 10.6x 9.2x

Masonite International Corporation $66.00 98.7% 1,983 2,329 $1,838 $117 6.3% 12.5x 9.6x

Trex Co. Inc. $50.64 94.7% 1,621 1,612 $392 $84 21.4% 15.3x 12.5x

Nortek Inc. $85.65 92.8% 1,393 2,680 $2,546 $242 9.5% 8.6x 7.9x

Interface Inc. $20.58 97.4% 1,370 1,578 $1,004 $113 11.3% 11.2x 10.0x

NCI Building Systems Inc. $17.10 78.9% 1,262 1,696 $1,383 $69 5.0% 12.1x 9.4x

Continental Building Products, Inc. $19.35 90.3% 854 1,187 $425 $115 27.0% 8.5x 7.2x

American Woodmark Corp. $51.94 96.9% 826 686 $807 $57 7.0% 8.9x NA

Tyman plc $4.88 96.9% 819 950 $547 $84 15.4% 10.2x 9.2x

Ply Gem Holdings, Inc $11.93 81.2% 810 1,770 $1,567 $119 7.6% 10.1x 7.7x

Quanex Building Products Corporation $19.59 89.9% 658 595 $597 $45 7.5% 9.7x 8.1x

PGT, Inc. $11.10 90.1% 529 680 $306 $44 14.5% 9.7x 8.0x

Norcraft Companies, Inc. $21.22 94.2% 367 472 $371 52 13.9% 7.6x 6.5x

Overall Median 95.7% 12.3% 11.9x 10.3x

Overall Mean 93.7% 13.1% 11.9x 10.6x

As of March 19, 2015 ($ in Millions, except per share amounts)

PAGE |

PUBLIC COMPARABLES

6

DISTRIBUTORS

BUILDING PRODUCTS & MATERIALS

INDUSTRY UPDATE │ MARCH 2015

Stock Performance

Current % of 2014 TEV / EBITDA

Price LTM High Mkt Cap TEV Revenue EBITDA Margin 2015 2016

Wolseley plc $62.00 99.7% $15,939 $17,032 $20,129 $1,378 6.8% 11.3x 10.1x

Beacon Roofing Supply, Inc. $29.35 74.0% 1,453 1,678 $2,371 126 5.3% 10.1x 8.7x

Richelieu Hardware Ltd. $48.26 97.6% 945 926 $567 67 11.9% 13.7x 12.7x

Builders FirstSource, Inc. $6.02 64.0% 591 957 $1,604 61 3.8% 10.7x 8.5x

Stock Building Supply Holdings, Inc. $16.84 79.0% 441 533 $1,296 32 2.5% 10.1x 7.2x

Hardwoods Distribution Inc. $9.91 90.1% 165 202 $389 22 5.7% 8.0x NA

CanWel Building Materials Group Ltd. $4.82 93.7% 138 243 $656 25 3.8% 10.0x 9.3x

Bluelinx Holdings Inc. $1.05 71.4% 94 523 $1,979 23 1.2% NA NA

Overall Median 84.6% 4.5% 10.1x 9.0x

Overall Mean 83.7% 5.1% 10.6x 9.4x

As of March 19, 2015 ($ in Millions, except per share amounts)

PAGE |

M&A ACTIVITY

7

BUILDING PRODUCTS & MATERIALS

INDUSTRY UPDATE │ MARCH 2015

Date Target Vertical Business Description Acquirer

3/7/2015 Mechoshade Systems, Inc. Building Materials

Manufacturer

Mechoshade Systems, Inc. prov ides manual, motorized, and automated

solar-shading and room-darkening solutions.

Springs Window Fashions

LLC

3/2/2015 BMI Products of Northern

California Inc.

Building Materials

Manufacturer

BMI Products of Northern California Inc. manufactures silo systems for

construction needs.

Sika AG

2/26/2015 Zero International, Inc. Building Materials

Manufacturer

Zero International, Inc. designs and manufactures a range of

specialized sealing systems for doors and windows.

Schlage Lock Company

LLC

2/26/2015 Atis Group Inc. Building Materials

Manufacturer

Atis Group Inc. manufactures and distributes doors and windows and

high performance energy-efficient products for the construction and

home improvement markets.

Desjardins Business Capital

régional et coopératif

2/25/2015 J. A. Jack & Sons, Inc. Building Materials

Manufacturer

J. A. Jack & Sons, Inc. mines and processes limestone. Harrison Gypsum, LLC

2/24/2015 Right Away Redy Mix, Inc. Building Materials

Manufacturer

Right Away Redy Mix, Inc. prov ides ready-mix, aggregate, and

concrete pumping products and serv ices.

U.S. Concrete, Inc.

2/18/2015 Maryland Materials, Inc. Building Materials

Manufacturer

Maryland Materials, Inc. engages in mining and producing granite and

traprock products.

Bluegrass Materials

Company, LLC

2/9/2015 IPS Corporation Building Materials

Manufacturer

IPS Corporation manufactures adhesives, solvent cements, and

components and supplies for plumbing, construction, and plastic

fabrication industries.

Nautic Partners, LLC

2/5/2015 Parasol Canada Building Materials

Manufacturer

Parasol Canada offers a selection of paint protection and window film

products in Canada.

XPEL Canada Corp.

2/2/2015 Ideal Pipe Ltd. Building Materials

Manufacturer

Ideal Pipe Ltd. engages in the design and manufacture of HDPE plastic

pipe systems for numerous industries in North America.

Advanced Drainage

Systems, Inc.

1/29/2015 Preferred Sands of

Canada, ULC, Assets of

Hanson Lake Facility

Building Materials

Manufacturer

Preferred Proppants, LLC, Assets of Hanson Lake Facility comprises silica

sand mining assets.

Hilco Industrial, LLC;

Gordon Brothers Group,

LLC, Investment Arm

1/27/2015 Fairmont Supply Company Building Materials

Manufacturer

Fairmont Supply Company is a multi-line industrial distributor that

distributes industrial maintenance, repair, and operating (MRO) supplies

in the United States.

Tenex Capital

Management

12/29/2014 AGC Flat Glass North

America, Inc.

Building Materials

Manufacturer

AGC Flat Glass North America, Inc. fabricates Commercial Glass in the

United States.

Trulite Glass Company, LLC

12/23/2014 PFB Corp. Building Products

Manufacturer

PFB Corporation is engaged in manufacturing and marketing insulating

building products primarily for the residential and commercial

construction projects in North America.

Aeonian Capital

Corporation

12/23/2014 Empire Truss Ltd. Building Products

Manufacturer

Empire Truss Ltd. manufactures custom design roof trusses and floor

trusses, and distributes engineered wood products.

Builders FirstSource, Inc.

12/15/2014 Lumber Specialties, Ltd. Building Products

Distributor

Lumber Specialties, Ltd. manufactures and distributes structural building

components for customers in the United States.

US LBM Holdings, LLC

12/15/2014 Distribution International,

Inc.

Building Products

Distributor

Distribution International, Inc. distributes thermal and acoustical

insulation and related supplies for maintenance and repair operations

worldwide.

Advent International

Corporation

12/11/2014 Diamond Concrete, Inc. Building Materials

Manufacturer

Diamond Concrete, Inc. manufactures and distributes concrete. U.S. Concrete, Inc.

12/9/2014 Standard Roofings, Inc. Building Products

Distributor

Standard Roofings, Inc., doing business as The Standard Group,

distributes exterior building products to builders, contractors, architects,

and homeowners.

American Builders &

Contractors Supply Co.,

Inc.

12/8/2014 Scofield Construction

Serv ices, LLC

Building Materials

Manufacturer

Scofield Construction Serv ices, LLC, through its subsidiaries, produces

ready-mix concrete.

Redi-Mix, L.P.

PAGE |

M&A ACTIVITY

8

BUILDING PRODUCTS & MATERIALS

INDUSTRY UPDATE │ MARCH 2015

Date Target Vertical Business Description Acquirer

12/8/2014 American Masons' &

Building Supply Co.

Building Products

Distributor

American Masons' & Building Supply Co. supplies building materials in the

Greater Hartford area.

US LBM Holdings, LLC

12/2/2014 HD Supply Distribution

Serv ices, LLC

Building Products

Distributor

HD Supply Distribution Serv ices, LLC distributes select building products

to national and regional hardware retailers, and the professional market

in North America.

The Home Depot, Inc.

12/1/2014 Handcrafted Homes, LLC Building Products

Manufacturer

Handcrafted Homes, LLC produces modular homes in the United States. Innovative Building Systems

LLC

11/25/2014 Wallboard Supply

Company, Inc.

Building Products

Distributor

Wallboard Supply Company, Inc. distributes and installs building

materials to commercial and residential construction industries in New

England.

US LBM Holdings, LLC

11/19/2014 Atlas Homewares, Inc. Building Products

Manufacturer

Atlas Homewares, Inc. designs decorative hardware products. Top Knobs, Inc.

11/19/2014 Airxcel, Inc. Building Products

Manufacturer

Airxcel, Inc. designs and manufactures air conditioning, heating,

ventilating, and related appliances.

Yukon Partners; One Rock

Capital Partners, LLC

11/19/2014 Acanthus Industries Inc. Building Products

Manufacturer

Acanthus Industries Inc. designs and manufactures architectural wood

products in Canada.

Art for Everyday, Inc.

11/19/2014 Texas Tempered Glass, Inc. Building Materials

Manufacturer

Texas Tempered Glass, Inc. is a glass fabricator serv ing commercial and

residential end markets in the United States and abroad.

Trulite Glass & Aluminum

Solutions, LLC

11/18/2014 Architectural Elements LLC Building Products

Manufacturer

Architectural Elements LLC manufactures and distributes doors,

windows, and hardware for residential and commercial construction in

the United States.

FP2D, LLC

11/18/2014 Brooklyn Navy Yard

Modular-Construction

Facility

Building Products

Manufacturer

Brooklyn Navy Yard Modular-Construction Facility comprises a

construction facility that constructs residential units.

Forest City Ratner

Companies, LLC

11/14/2014 Alcoa Heating & Cooling Building Products

Manufacturer

Alcoa Heating & Cooling provides installation and serv ice support for

HVAC systems, tankless gas water heaters, and home generators.

MK Russell & Abbott

11/13/2014 Peachtree Communities,

Inc.

Building Products

Manufacturer

Peachtree Communities, Inc. builds homes/residences in Atlanta. Century Communities, Inc.

11/11/2014 Vicwest Inc Building Products

Manufacturer

Vicwest Inc. manufactures and distributes building construction

products and steel containment products North America and

internationally.

Kingspan Group plc

11/11/2014 Southern Fastening

Systems, Inc.

Building Products

Distributor

Southern Fastening Systems, Inc. distributes tools and fasteners for wood

construction projects and manufacturing operations.

Carlson Systems, LLC

11/10/2014 Industrial Noise Control,

Inc.

Building Products

Manufacturer

Industrial Noise Control, Inc. manufactures and distributes industrial

noise control products and systems for applications in industrial,

commercial, architectural, and environmental markets.

United Process, Inc.

11/10/2014 CENTRIA Incorporated Building Materials

Manufacturer

CENTRIA Incorporated designs, develops, and manufactures

engineered wall, roof, and floor systems, as well as prov ides coil

coating serv ices.

Steelbuilding.com, Inc.;

NCI Group, Inc.

11/8/2014 Trussbilt LLC Building Products

Manufacturer

Trussbilt LLC. designs and manufactures security products. Coastal Plain Ventures, LLC

11/7/2014 Henkens Equipment, Inc. Building Products

Manufacturer

Henkens Equipment, Inc. is engaged in the sale of agricultural and

construction equipment.

Butler Ag Equipment

11/5/2014 Connor Sport Court

International, Inc.

Building Products

Manufacturer

Connor Sport Court International, Inc. designs and builds sports

surfacing and flooring products.

Gerflor USA, Inc.

11/4/2014 Hanson Structural Precast,

Inc.

Building Materials

Manufacturer

Hanson Structural Precast, Inc. manufactures and supplies structural and

architectural precast components.

Wells Concrete Products,

Inc.

PAGE |

M&A ACTIVITY

9

BUILDING PRODUCTS & MATERIALS

INDUSTRY UPDATE │ MARCH 2015

Date Target Vertical Business Description Acquirer

11/4/2014 Hanson Structural Precast,

Inc.

Building Materials

Manufacturer

Hanson Structural Precast, Inc. manufactures and supplies structural and

architectural precast components.

Wells Concrete Products,

Inc.

11/3/2014 Watertown Plumbing And

Heating Supply Co., Inc.

(nka:Watertown Supply, a

Building Products

Distributor

Watertown Supply, a Div ision of F.W. Webb Company is a wholesale

distributor specializing in piping, plumbing, and heating repair parts for

commercial/industrial/institutional facilities maintenance.

F.W. Webb Company

10/31/2014 Damron Sand & Gravel,

Inc.

Building Materials

Manufacturer

Damron Sand & Gravel, Inc. manufactures and supplies sand and

gravel in Lubbock, Texas.

PB Materials Holdings, Inc.

10/27/2014 TMI, LLC Building Products

Manufacturer

TMI, LLC extrudes and manufactures flexible polyv inyl chloride (PVC)

and energy control doors.

River Associates

Investments, LLC

10/23/2014 Peterson Industries, Inc. Building Products

Manufacturer

Peterson Industries, Inc. manufactures and distributes tub enclosures,

shower enclosures and doors, mirror closet doors, and sliding glass patio

doors.

Aldora Aluminum and Glass

Products Inc.

10/21/2014 Tarragon Homes LLC Building Products

Manufacturer

Tarragon Homes LLC provides homebuilding serv ices. AVEW Holdings Inc.

10/21/2014 New York Sand & Stone,

LLC

Building Materials

Distributor

New York Sand & Stone, LLC supplies construction materials in the New

York City market.

Eastern Concrete

Materials, Inc.

10/17/2014 CRS Proppants LLC Building Materials

Manufacturer

CRS Proppants LLC provides resin coated sands for oil and gas well

fracturing applications.

Northern White Sand LLC

10/16/2014 The Byran Company, Inc. Building Products

Manufacturer

The Byran Company, Inc. manufactures screws, hooks, and orthopedic

devices used in aerospace and spinal implant surgeries.

M Line Holdings, Inc.

10/16/2014 L&L Maintenance

Company and L&L

Cleanroom Construction

Building Products

Manufacturer

L & L Maintenance Co., Inc. manufactures and installs modular wall

systems and ceiling grids.

AM Technical Solutions,

Inc.

10/15/2014 Wholesale Roofing Supply

Houston, Inc.

Building Products

Distributor

Wholesale Roofing Supply Houston, Inc. distributes roofing and millwork

products for residential and commercial customers.

Beacon Roofing Supply,

Inc.

10/15/2014 The Gravel Company, LLC Building Materials

Distributor

The Gravel Company, LLC sells landscape and construction materials in

Tennessee.

Harrison Gypsum, LLC

10/14/2014 Carlson Systems Holdings,

Inc.

Building Products

Manufacturer

Carlson Systems Holdings, Inc., through its subsidiaries, engineers and

manufactures fasteners and other machinery solutions for the cabinet,

furniture, and fenestration industries.

Tenex Capital

Management

10/10/2014 Empire Plumbing Supply,

Inc.

Building Products

Distributor

As of October 10, 2014, Empire Plumbing Supply, Inc., doing business as

EP Supply, operates as a wholesale supply distributor for plumbing,

mechanical, and industrial markets in the United States.

Morrison Supply Company,

LLC

10/9/2014 DOT Fasteners Inc. Building Products

Manufacturer

DOT Fasteners Inc. manufactures snap fasteners and eyelets. Morito Co., Ltd.

10/9/2014 Colorado County Sand &

Gravel And Concrete

Supply of Topeka

Building Materials

Distributor

Colorado County Sand & Gravel And Concrete Supply of Topeka is a

concrete delivery company.

Summit Materials, LLC

10/8/2014 NDS Inc. Building Products

Manufacturer

NDS Inc., a water management solutions company, designs and

manufactures stormwater management, landscape irrigation, and

water flow management products and solutions.

NORMA Group SE

10/1/2014 Applicators Sales &

Serv ice, Inc.

Building Products

Distributor

Applicators Sales & Serv ice, Inc. supplies building products for

contractors in the Northeast United States.

Beacon Roofing Supply,

Inc.

9/30/2014 The Standard Companies

Inc.

Building Products

Distributor

The Standard Companies, Inc. is a building products distributor serv ing

contractors and professional builders in the Midwest.

US LBM Holdings, LLC

9/30/2014 Five Aggregates Facilities

and Associated

Downstream Assets

Building Materials

Manufacturer

Five Aggregates Facilities in Delaware were acquired by Vulcan

Materials Company.

Vulcan Materials Company

PAGE |

REPRESENTATIVE BUILDING PRODUCTS TRANSACTIONS

10

BUILDING PRODUCTS & MATERIALS

INDUSTRY UPDATE | MARCH 2015

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

a division of

has been acquired by

has been acquired by

a division of

has been acquired by

has been acquired by

a portfolio company of

has been acquired by

a division of

a division of

has been acquired by

and a portfolio

company of

has been acquired by

a portfolio company of

a subsidiary of

has been acquired by

A Private Investor

Group

has completed a

recapitalization

with

a portfolio company of

has been acquired by

a subsidiary of

has been acquired by

a portfolio company of

Select Atlanta,

Georgia aggregates

assets of LaFarge SA

have been acquired

by

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

have been acquired by

The Wichita, Kansas

aggregates, concrete,

asphalt, and paving

assets

of LaFarge SA

a division of

has been acquired by

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

Strategic

Industries, LLC

Private Investors

has been acquired by

a portfolio company of

has purchased

certain assets of

Energy & Power

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

PAGE |

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

Building Products & Materials

Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit form our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries

11

OUR FIRM

BostonTwo International Place24th FloorBoston, Massachusetts 02110Phone: +1 (617) 482-7501Fax: +1 (617) 482-7503

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400Fax: +1 (216) 689-2401

Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700Fax: +1 (612) 359-2701

Philadelphia1600 Market Street21st FloorPhiladelphia, Pennsylvania 19103Phone: +1 (267) 675-5900Fax: +1 (267) 675-5901

Richmond (U.S. Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072Fax: +1 (804) 648-0073

San Francisco575 Market Street31st FloorSan Francisco, California 94105, USAPhone: +1 (415) 288-4260Fax: +1 (415) 288-4269

FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00Fax: +49 069 3650638 01

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UNITED STATES EUROPE

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Beijing

Hong Kong

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New Delhi

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BUILDING PRODUCTS & MATERIALS

INDUSTRY UPDATE │ MARCH 2015

PAGE |

HARRIS WILLIAMS & CO.

12

BUILDING PRODUCTS & MATERIALS

INDUSTRY UPDATE | MARCH 2015

Bureau of Economic Analysis

Capital IQ

Eurostat

Freedonia

Global Industry Analysts

IBIS

PNC Economic Outlook

S&P Leveraged Commentary & Data

The Wall Street Journal

Thomson Financial – SDC Database

Thomson Reuters

U.S. Census Bureau

Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

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