Building Products & Materials Industry Update

BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015

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0 BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015 BUILDING PRODUCTS & MATERIALS GROUP OVERVIEW

CONTENTS INTRODUCTION . WHAT WE’RE READING Harris Williams & Co. is pleased to present our Building Products and Materials . PUBLIC MARKETS Industry Update for August 2015. This report provides commentary and analysis on . PUBLIC COMPARABLES current capital market trends and merger and acquisition dynamics within the . M&A ACTIVITY global building products and materials industry.

We hope you find this edition helpful and encourage you to contact us directly if you would like to discuss our perspective on current industry trends and M&A opportunities or our relevant industry experience. CONTACTS Mike Hogan OUR PRACTICE Managing Director [email protected] Harris Williams & Co. is a leading advisor to the building products and materials +1 (804) 915-0104 industry. Our significant experience covers a broad range of end markets, industries, and business models. Ryan Nelson Managing Director [email protected] Distribution & Construction Building Products +1 (804) 915-0121 Services Materials . Acoustical . Roofing . Architectural and . Aggregates Trey Packard . Cabinets and . Siding . Engineering . Asphalt Vice President . Countertops . Tools and Hardware . Installation and . Aluminum [email protected] . Carpet and Flooring . Windows and Doors . Contracting . Bricks +1 (804) 887-6016 . Gypsum / Wallboard . Lumber and . Clay . Electrical Fixtures . Hardware . Glass . HVAC . Plumbing . Precast Concrete / . Lumber . Roofing and Siding Ready Mix . Plumbing Fixtures . Site Development . Steel . Wallboard . Stone

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PAGE | 1 BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015 WHAT WE’RE READING

U.S. HOUSING STARTS NEAR EIGHT-YEAR HIGH, BUT PERMITS FALL Reuters 8/18/2015 WASHINGTON, Aug 18 (Reuters) - U.S. housing starts rose to a near eight-year high in July as builders ramped up construction of single-family homes, suggesting that the economy was firing on almost all cylinders. The Commerce Department report on Tuesday added to solid payrolls, retail sales and industrial output data in suggesting the economy got off to a strong start in the third quarter. The steady flow of upbeat economic reports has bolstered views that the Federal Reserve will raise interest rates in September. "The Fed is likely to take further reassurance that housing is on an improving trend and this should add to the view that the economy is in more normal territory," said John Ryding, an economist at RDQ Economics in New York. Read the full article here.

BUILDERS’ SENTIMENT INCHES UP

NAHB 8/17/2015 The August read on builder sentiment continued its slow rise to a nine plus year high of 61, up one point from July. The index has been at 60 or more since June and above the tipping point of 50 since July 2014. Components measuring current and future home sales also rose to or remained at new heights not seen since late 2005. The current sales index rose one point to 66 and the expected sales component remained at 70 after rising to that level in July. Regional indicators (as measured by a three-month moving average) also rose or remained at heightened levels. Read the full article here.

BUILDING MATERIAL PRICES FALL DESPITE RISING CONSTRUCTION SPENDING

Construction Dive 8/17/2015 The July numbers bucked conventional wisdom, which says prices of building materials should spike when construction spending is up and fall when spending is down. But nonresidential construction spending is on an upswing, rising by approximately 11.5% between June 2014 and June 2015, and multifamily construction is booming in most U.S. cities. Yet the prices of concrete, fabricated structural metal products, iron and steel, prepared asphalt, metals, and nonferrous wire and cable fell slightly last month. Crude energy materials and crude petroleum prices tumbled more substantially. Read the full article here.

JUNE CONSTRUCTION SPENDING POSTS SMALLEST GAIN IN FIVE MONTHS, BUT UP 12% ANNUALLY

Forbes Business 8/3/2015 Construction spending in the U.S. rose 12% year-over-year in June, the Commerce Department said Monday. But on a monthly basis, the gain was the smallest in five months. Spending in June was nearly flat with May’s level, inching up just 0.1% to a seasonally adjusted annual rate of $1,064.6 billion. That was the smallest rise for construction spending since January. But June’s total is 12% higher than the estimate for June 2014, when (seasonally adjusted, annual) construction spending stood at $950.3 billion. The June increase fell short of the consensus 0.6% bump forecast by economists surveyed ahead of the release by Bloomberg . Read the full article here.

OLDCASTLE PARENT CLOSES ON LAFARGE, HOLCIM ASSETS

Rock Journal 8/6/2015 CRH has closed on a portfolio of Lafarge S.A. and Holcim Ltd. cement, concrete and aggregate production assets in 10 countries across the Americas and Europe. At a $7.2 billion enterprise value, the transaction is among the largest to date involving publicly traded, global heavy building materials companies – trailing Cemex-Rinker and HeidelbergCement-Hanson ($15 billion–$16 billion; 2007) and Lafarge-Orascom ($12 billion, 2008). The acquired assets represent the bulk of properties Lafarge and Holcim officials agreed to unload in advance of an early-July merger forming LafargeHolcim Ltd. The assets span nearly 700 sites, approximately 10 percent of which are cement, ready mixed concrete and aggregate plants, plus 18 terminals, under or tied to Holcim (Canada) Inc. Those properties extend to the north a solid footprint Oldcastle Materials enjoys throughout Great Lakes markets in the U.S. Read the full article here.

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PAGE | 2 BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015 PUBLIC MARKETS

MEDIAN REVENUE GROWTH (2011 – 2014) MEDIAN REVENUE GROWTH (2014 – 2015P)

Building Materials 7.3% Building Materials 2.9%

Building Products 8.7% Building Products 7.1%

Building Products Distributors 9.9% Building Products Distributors 3.8%

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

Building Materials 15.0% Building Materials 9.9%

Building Products 12.8% Building Products 14.7%

Building Products Distributors 4.9% Building Products Distributors 8.9%

MEDIAN CAPEX / REVENUE (2015E) MEDIAN TEV / 2015 EBITDA

Building Materials 5.8% Building Materials 9.8x

Building Products 2.7% Building Products 11.2x

Building Products Distributors 1.2% Building Products Distributors 11.8x

HISTORICAL STOCK PRICES (AUGUST 10TH, 2010 – AUGUST 15TH, 2015)

200%

150%

100%

50%

(50%) Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15

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

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PAGE | 3 BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015 PUBLIC COMPARABLES

BUILDING PRODUCTS

As of August 17, 2015 ($ in Millions, except per share amounts)

Stock Performance Current % of 2014 TEV / EBITDA Price LTM High Mkt Cap TEV Revenue EBITDA Margin 2015 2016

ASSA ABLOY AB $19.82 91.8% $22,254 $25,038 $7,265 $1,312 18.1% 17.1x 15.6x Mohawk Industries Inc. 206.96 99.6% 15,328 18,661 7,803 1,161 14.9% 13.6x 11.5x Masco Corporation 27.18 95.8% 9,362 11,458 8,521 1,003 11.8% 11.0x 10.0x Fortune Brands Home & Security, Inc. 50.98 99.9% 8,141 9,310 4,014 498 12.4% 14.7x 12.2x Lennox International, Inc. 123.53 98.7% 5,631 6,640 3,367 387 11.5% 14.6x 12.6x Owens Corning 46.45 99.5% 5,459 7,596 5,276 717 13.6% 9.5x 8.4x USG Corporation 32.19 98.5% 4,666 6,562 3,724 454 12.2% 11.1x 9.6x Kingspan Group plc 25.23 94.6% 4,445 4,623 2,289 229 10.0% 15.0x 12.7x Armstrong World Industries, Inc. 58.73 98.0% 3,245 4,080 2,515 313 12.5% 11.0x 9.8x Masonite International Corporation 64.64 88.2% 1,961 2,319 1,838 117 6.3% 11.7x 8.6x Interface Inc. 25.63 94.3% 1,691 1,878 1,004 113 11.3% 12.0x 10.4x Trex Co. Inc. 40.83 70.7% 1,312 1,346 392 84 21.4% 13.6x 11.0x Nortek Inc. 74.63 83.0% 1,214 2,670 2,546 242 9.5% 9.1x 8.2x American Woodmark Corp. 64.87 98.0% 1,063 901 807 57 7.0% 11.2x 9.9x Ply Gem Holdings, Inc 14.26 93.2% 972 1,992 1,567 119 7.6% 11.5x 8.6x Continental Building Products, Inc. 20.49 84.6% 892 1,206 425 115 27.0% 8.7x 7.6x NCI Building Systems Inc. 11.50 53.0% 849 1,289 1,383 69 5.0% 9.7x 7.5x Tyman plc 4.85 90.7% 827 990 547 84 15.4% 10.2x 9.3x Quanex Building Products Corporation 19.54 89.1% 671 612 597 45 7.5% 9.2x 7.2x PGT, Inc. 13.06 80.2% 639 785 306 44 14.2% 11.0x 9.2x

Overall Median 93.8% 12.0% 11.2x 9.7x

Overall Mean 90.1% 12.5% 11.8x 10.0x

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PAGE | 4 BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015 PUBLIC COMPARABLES

DISTRIBUTORS

As of August 17, 2015 ($ in Millions, except per share amounts)

Stock Performance Current % of 2014 TEV / EBITDA Price LTM High Mkt Cap TEV Revenue EBITDA Margin 2015 2016

Wolseley plc $66.54 96.9% $16,856 $18,822 $20,129 $1,381 6.9% 11.6x 10.4x HD Supply Holdings, Inc. 34.37 93.4% 6,961 12,167 9,009 831 9.2% 13.6x 12.2x Beacon Roofing Supply, Inc. 36.00 99.0% 1,802 2,076 2,371 126 5.3% 12.6x 10.3x Builders FirstSource, Inc. 14.22 91.9% 1,549 1,917 1,604 61 3.8% 22.3x 17.1x Stock Building Supply Holdings, Inc. 19.03 75.5% 502 582 1,296 32 2.5% 13.3x 8.8x Hardwoods Distribution Inc. 13.02 93.8% 217 254 389 22 5.7% 9.7x 9.1x CanWel Building Materials Group Ltd. 4.19 83.5% 176 321 656 25 3.8% 12.0x 9.2x Bluelinx Holdings Inc. 0.90 64.7% 87 564 1,979 23 1.2% NA NA Huttig Building Products Inc. 3.13 71.1% 78 154 642 14 2.1% NA NA Goodfellow Inc. 6.91 82.0% 59 109 409 13 3.1% NA NA Taiga Building Products Ltd. 0.61 84.2% 20 235 1,104 35 3.1% NA NA

Overall Median 84.2% 3.8% 11.8x 10.3x

Overall Mean 85.1% 4.2% 13.6x 11.0x

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PAGE | 5 BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015 PUBLIC COMPARABLES

BUILDING MATERIALS

As of August 17, 2015 ($ in Millions, except per share amounts)

Stock Performance Current % of 2014 TEV / EBITDA Price LTM High Mkt Cap TEV Revenue EBITDA Margin 2015 2016

Aggregates and Cement LafargeHolcim Ltd. $67.36 85.0% $21,882 $33,678 $19,238 $3,755 19.5% 5.3x 5.1x CRH plc 30.51 97.1% 25,092 28,033 22,892 1,972 8.6% 12.1x 9.7x HeidelbergCement AG 78.53 91.7% 14,624 22,796 15,281 2,472 16.2% 7.9x 7.2x Vulcan Materials Company 97.84 99.6% 13,022 14,993 2,994 575 19.2% 18.3x 13.9x CEMEX, S.A.B. de C.V. 0.81 77.6% 10,314 25,825 14,228 2,482 17.4% 9.0x 7.7x Martin Marietta Materials, Inc. 173.54 99.0% 11,727 13,343 2,679 588 22.0% 15.9x 12.4x Eagle Materials Inc. 83.29 78.8% 4,214 4,730 1,032 284 27.5% 12.1x 9.7x Summit Materials, Inc. 26.48 91.3% 1,293 2,297 1,204 174 14.4% 8.2x 7.1x

Median 91.5% 18.3% 10.5x 8.7x

Mean 90.0% 18.1% 11.1x 9.1x

Heavy Construction Materials James Hardie Industries plc $13.35 90.4% $5,933 $6,238 $1,622 $348 21.5% 14.4x 12.3x Boral Limited 4.83 94.9% 3,695 4,349 3,643 335 9.2% 9.8x 8.8x Headwaters Incorporated 21.15 97.2% 1,562 2,039 825 134 16.2% 12.0x 10.3x U.S. Concrete, Inc. 55.72 96.8% 823 1,089 704 70 9.9% 9.5x 7.8x

Median 95.9% 20.7% 10.9x 7.8x

Mean 94.8% 14.2% 11.4x 9.8x

Lumber and Wood Products Weyerhaeuser Co. $30.94 83.5% $16,038 $20,333 $7,693 $1,722 22.4% 13.6x 11.1x West Fraser Timber Co. Ltd. 41.65 69.3% 3,485 3,779 3,330 497 14.9% 8.7x 5.8x Canfor Corp. 16.55 67.7% 2,210 2,628 2,891 442 15.3% 7.4x 4.9x Louisiana-Pacific Corp. 16.64 89.3% 2,371 2,646 1,935 16 0.8% 44.1x 11.0x Norbord, Inc. 17.92 80.1% 1,536 2,278 1,198 89 7.4% 21.6x 7.2x Boise Cascade Company 30.95 70.5% 1,235 1,391 3,574 196 5.5% 8.1x 6.5x Universal Forest Products Inc. 63.95 99.7% 1,286 1,420 2,660 130 4.9% 8.8x 8.1x

Median 80.1% 7.4% 8.8x 7.2x

Mean 80.0% 13.9% 11.9x 7.8x

Overall Median 90.4% 15.3% 9.8x 8.1x

Overall Mean 87.3% 14.4% 13.0x 8.8x

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PAGE | 6 BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015 M&A TRANSACTIONS

Announced Target Vertical Business Description Acquirer Date 8/14/2015 Limestone Property on the Building Materials Limestone Property on the North Coast of British Columbia comprises Durango Resources Inc. North Coast of British limestone mineral property and is located in Canada. Columbia 8/12/2015 Quest Construction Building Products Quest Construction Products, LLC manufactures protective systems and Building Materials Products, LLC coatings for the construction Industry. Corporation of America, Inc. 8/11/2015 Lindab Inc. Building Products Lindab Inc. engages in the development, manufacture, and marketing Ductmate Industries, Inc. of sheet metal products for the heating, ventilation, and air conditioning (HVAC) industry. 8/4/2015 Martin Marietta Materials, Building Materials Martin Marietta Materials, Inc., California Cement Business Assets CalPortland Company, Inc. Inc., California Cement includes the business operations manufacturing cement. Business Assets 8/4/2015 Select Aggregate and Building Materials Three Aggregates Facilities and Seven Ready-Mixed Concrete Vulcan Materials Company Ready-Mixed Concrete Operations in Arizona and New Mexico were acquired by Vulcan Facilities Materials Company. 8/4/2015 Beatrice Concrete Building Products Beatrice Concrete Company, Inc. produces sand, gravel, and crushed NEBCO, Inc. Company, Inc. rock.

8/4/2015 Midwest Millwork, Inc. Building Products Midwest Millwork, Inc. manufactures cabinets, doors, millwork, Bliffert Lumber & Fuel windows, hardware, plywood, framing lumber, and building materials. Company, Inc.

8/3/2015 Alaska Industrial Distribution Alaska Industrial Hardware, Inc. operates as a retailer and distributor of Bering Straits Native Hardware, Inc. hand and power tools, builder hardware, contractor and industrial Corporation supplies, and maintenance and safety products in Alaska. 8/3/2015 MGM Industries, Building Products MGM Industries, Incorporated produces custom PVC vinyl window and Custom Window Systems, Incorporated door products for homeowners, builders, and remodelers. Inc.

7/29/2015 Structus Building Building Products Structus Building Technologies, Inc. designs and manufactures building CertainTeed Gypsum, Inc. Technologies, Inc. products for the drywall industry.

7/29/2015 US LBM Holdings, LLC Distribution US LBM Holdings, LLC, through its subsidiaries, distributes building Kelso & Company materials in the Midwest, Northeast, Southeast, the Mid-Atlantic, and Western United States. 7/29/2015 Watts Water Technologies, Building Products Select assets of Watts Water Technologies, Inc., including facilities Sioux Chief Manufacturing Inc., Select Assets related to brass fittings, brass & tubular and vinyl tubing product lines for Company, Inc. homes. 7/27/2015 Roofing Supply Group, LLC Distribution Roofing Supply Group, LLC distributes and markets roofing materials and Beacon Roofing Supply, related building products in the United States. Inc.

7/22/2015 Interline Brands Inc. Distribution Interline Brands, Inc., together with its subsidiaries, operates as a The Home Depot, Inc. distributor and direct marketer of broad-line maintenance, repair, and operations products in the United States, Canada, and Central America. 7/21/2015 Madawaska Doors, Inc. Building Products Madawaska Doors, Inc. manufactures and markets wooden doors. Plaintree Systems Inc.

7/17/2015 House of Doors, Inc. Distribution House of Doors, Inc. supplies, installs, and services commercial and Material Handling Services, residential sectional doors, rolling steel doors, dock equipment, and LLC wood carriage house doors. 7/15/2015 Cali Bamboo, LLC Building Products Cali Bamboo, LLC manufactures green building products for residential High Road Capital Partners; and commercial projects. High Road Capital Partners Fund II, L.P. 7/14/2015 Better Life Technology, LLC Building Products Better Life Technology, LLC manufactures and supplies roll-out garage Century Park Capital and concrete basement floor covers worldwide. Partners, LLC; Century Park Capital Partners II, L.P 7/1/2015 Jarvis Supply Company, Distribution Jarvis Supply Company, Inc. distributes industrial tooling to machine BlackHawk Industrial Inc. shops in Colorado and beyond. Distribution, Inc.

7/2/2015 BD Enterprises, Inc. Distribution BD Enterprises, Inc., doing business as Single Source Cabinet Supplies, Richelieu Hardware Ltd. distributes and sells laminates, millwork, and cabinetry supplies.

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PAGE | 7 BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015 M&A TRANSACTIONS

Announced Target Vertical Business Description Acquirer Date 6/30/2015 Advanced Flooring and Building Products Advanced Flooring and Design LLC manufactures floor covering and Interior Specialists, Inc. Design LLC interior finish products to builders and homebuyers.

6/24/2015 Golden State Window & Building Product Golden State Window & Door Design supplies doors, windows, molding, Golden State Lumber, Inc. Door Design Distribution and mantles to residential and commercial customers.

6/23/2015 C.H.I. Overhead Doors, Building Products C.H.I. Overhead Doors, Inc. manufactures residential, commercial, KKR & Co. L.P.; KKR North Inc. rolling steel, and garage doors for residential and business applications. American XI Fund, L.P.

6/19/2015 Craft Equipment Company Distribution Craft Equipment Company distributes material handling, storage, and Material Handling Services, waste reduction equipment in Alabama, Florida, Georgia, South LLC Carolina, and Tennessee. 6/17/2015 Anchor Block Company Building Materials Anchor Block Company designs, manufactures, and sells concrete Oldcastle Architectural, and Anchor Wall Systems, landscape and masonry products. Inc. Inc. 6/11/2015 Oldcastle Surfaces, Inc. Building Materials Oldcastle Surfaces, Inc. manufactures and markets countertops and Seven Stone Surface solid surfaces. Fabrication, Inc.

6/10/2015 Kentec, Inc. Distribution Kentec, Inc. distributes commercial quality tools, pneumatic nailing and Southern Fastening Systems, stapling systems, foam insulation, and adhesives. Inc.

6/8/2015 Rock Ridge Stone Inc. Building Materials Rock Ridge Stone Inc. quarries, manufactures, and distributes natural Salt Creek Capital II, LLC stone products for outdoor applications in the residential and commercial construction markets. 6/4/2015 A.H. Harris & Sons, Inc. Distribution A.H. Harris & Sons, Inc. distributes and sells construction supplies to Frontenac Company heavy and highway construction, commercial, industrial, and residential markets. 6/3/2015 Stock Building Supply Distribution Stock Building Supply Holdings, Inc., together with its subsidiaries, Building Materials Holding Holdings, Inc. distributes lumber and building materials in the United States. Corporation

6/3/2015 Insulation Fabricators, Inc. Building Products Insulation Fabricators, Inc. fabricates and distributes thermal and Distribution International, acoustical insulation products for industrial and commercial markets. Inc.

6/2/2015 Mason Corporation Building Products Mason Corporation manufactures aluminum building products for the Superior Metal Products residential and light commercial markets. Its products include glass Co., Inc. enclosures, retractable doors, awnings, and patio covers. 6/1/2015 ProCoat Systems, Inc. Distribution ProCoat Systems, Inc. supplies building materials to commercial and Beacon Roofing Supply, residential construction projects in Colorado and surrounding areas. Inc.

6/1/2015 DuBROOK Concrete, Inc. Building Materials DuBROOK Concrete, Inc. manufactures and delivers ready-mixed U.S. Concrete, Inc. concrete in the northern Virginia market through its three ready-mixed concrete batch plants and fleet of 42 mixer trucks. 5/31/2015 Thermo-Cell Industries Building Products Thermo-Cell Industries Limited manufactures thermal and acoustical US GreenFiber, LLC Limited cellulose insulation, specialty fibers, and hydroseeding mulches.

5/27/2015 Advanced Building Building Products Advanced Building Products, Inc. manufactures and installs aluminum SRS Distribution, Inc. Products, Inc. replacement and storm windows. It also engages in distributing residential exterior building materials such as siding, and roofing. 5/22/2015 Colonial Concrete Building Materials Colonial Concrete Company, Inc. produces ready-mix concrete and U.S. Concrete, Inc. Company, Inc. offers products for footing applications, light weight mixes for elevated slabs, flyash mixes, curbs and sidewalks, and color concrete. 5/7/2015 Simon Contractors., Building Materials Blueknight Energy Parterns has acquired a Cheyenne, Wyoming asphalt Blueknight Energy Partners, Cheyenne, Wyoming terminalling facility previously owned by Simon Contractors, a multi- L.P. Asphalt Terminal state, heavy highway contractor. 5/4/2015 TruStile Doors, LLC Building Products TruStile Doors, LLC designs and manufactures doors. In addition the Marvin Windows and company provides design, planning, and support services. TruStile is Doors, Inc. based in Denver, CO. 4/22/2015 Holcim Ltd., Cement Building Materials Holcim Ltd. divested its slag cement grinding facility in Camden, NJ, and ESSROC Cement Corp. Facilities in USA its cement terminal in Everett, MA. The acquisition will be finalized with the pending Holcim and LaFarge merger in 2015.

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PAGE | 8 BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015 M&A TRANSACTIONS

Announced Target Vertical Business Description Acquirer Date 4/22/2015 Holcim Ltd., Cement Building Materials Holcim Ltd. divested its slag cement grinding facility in Camden, NJ, and ESSROC Cement Corp. Facilities in USA its cement terminal in Everett, MA. The acquisition will be finalized with the pending Holcim and LaFarge merger in 2015. 4/20/2015 VNS Corporation Building Products Headquartered in Vidalia, Georgia, VNS operates six full line building Building Materials Holding material stores, a wholesale company, a one step roofing yard, two Corporation manufacturing companies plus a construction services company. 4/17/2015 Direct Cabinet Sales, Inc. Distribution Direct Cabinet Sales, Inc. designs, distributes, sells, and installs US LBM Holdings, LLC kitchen/bath/storage cabinetry and related products to residential, commercial, and new construction markets. 4/17/2015 Rosen Materials, LLC Distribution Rosen Materials, LLC distributes residential and commercial building US LBM Holdings, LLC products in the United States and the Caribbean.

4/17/2015 Grabill Incorporated Building Products Grabill Incorporated manufactures designer windows and doors. Pella Corporation

4/17/2015 Lafarge North America Building Materials Lafarge North America Inc., Cement Assets comprise a cement plant in Continental Cement Inc., Cement Assets Davenport, IA, plus seven Mississippi River cement distribution terminals Company, LLC that stretch from Minneapolis to New Orleans. 4/15/2015 A1A Sod Sand & Soil, Inc. Distribution A1A Sod Sand & Soil, Inc. operates a retail and wholesale garden A1 Group, Inc. center that offers a range of commercial and residential designs, delivery, and installations in South Florida. 4/14/2015 Security Supply Distribution Security Supply Corporation markets plumbing, heating, and cooling WinWholesale Inc. Corporation equipments.

4/13/2015 ProBuild Holdings, Inc. Distribution ProBuild Holdings, Inc. distributes lumber and building materials to Builders FirstSource, Inc. builders, contractors, and tradesmen in the United States.

4/7/2015 Northland Construction Distribution Northland Construction Supplies Ltd. supplies goods to concrete National Concrete Supplies Ltd. construction, ceramic, and masonry industries. Accessories

4/2/2015 Richardson Gypsum, LLC Distribution Richardson Gypsum, LLC provides construction supplies and equipment US LBM Holdings, LLC for construction projects.

4/2/2015 Ferrara Brothers Building Building Materials Ferrara Brothers Building Materials Corp. manufactures concrete. U.S. Concrete, Inc. Materials Corp.

3/31/2015 Design Specialties, Inc. Building Products Design Specialties, Inc. manufactures glass fireplace doors. Blackthorne Partners LTD.

3/30/2015 Norcraft Companies, Inc. Building Products Norcraft Companies, Inc. manufactures kitchen and bathroom Fortune Brands Home & cabinetry in the United States and Canada. Security, Inc.

3/30/2015 AFC Industries, Inc. Distribution AFC Industries, Inc. engages in the purchase, distribution, assembly, and North Sky Capital; Incline packaging of fasteners and related hardware products. Equity Partners; Incline Equity Partners III, L.P. 3/27/2015 PrimeSource Building Distribution PrimeSource Building Products, Inc. distributes fasteners and building Platinum Equity, LLC Products, Inc. materials.

3/26/2015 Martin Fireproofing Building Products Martin Fireproofing Corporation manufactures, sells, and installs Innovative Metals Corporation specialty roof deck solutions. Company, Inc.

3/25/2015 Pinnacle Stone & Tile LLC Building Products Pinnacle Stone & Tile LLC manufactures and installs countertops, shower L.A.R.K. Industries, Inc. and bath surrounds, fireplaces, vanities, floor inlays, and custom projects in Northern California. 3/25/2015 J & B Materials, Inc. Building Materials J & B Materials, Inc. is a supplier of drywall, metal studs, plaster, pool, GMS, Inc. and general building materials.

3/19/2015 Pipeline Supply, Inc. Distribution Pipeline Supply, Inc. operates as a wholesale distributor of plumbing, Dakota Supply Group, Inc. HVAC, hydronics, radiant floor heating, sewer, water, and well supplies.

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PAGE | 9 BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015 REPRESENTATIVE BUILDING PRODUCTS & MATERIALS TRANSACTIONS

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PAGE | 19 BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015

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Boston Richmond (Headquarters) Frankfurt Two International Place 1001 Haxall Point Bockenheimer Landstrasse 33-35 24th Floor 9th Floor 60325 Frankfurt Boston, Massachusetts 02110 Richmond, Virginia 23219 Germany Phone: +1 (617) 482-7501 Phone: +1 (804) 648-0072 Phone: +49 069 3650638 00 Fax: +1 (617) 482-7503 Fax: +1 (804) 648-0073 Fax: +49 069 3650638 01 Cleveland San Francisco London 1900 East 9th Street 575 Market Street 63 Brook Street 20th Floor 31st Floor London W1K 4HS, England Cleveland, Ohio 44114 San Francisco, California 94105, USA Phone: +44 (0) 20 7518 8900 Phone: +1 (216) 689-2400 Phone: +1 (415) 288-4260 Fax: +44 (0) 20 7526 2187 Fax: +1 (216) 689-2401 Fax: +1 (415) 288-4269 Minneapolis NETWORK OFFICES 222 South 9th Street Suite 3350 Beijing New Delhi Minneapolis, Minnesota 55402 Phone: +1 (612) 359-2700 Hong Kong Shanghai Fax: +1 (612) 359-2701 Mumbai

PAGE | 11 BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ AUGUST 2015 HARRIS WILLIAMS & CO.

SOURCES

Bloomberg Thomson Financial – SDC Database

Building Design & Construction Thomson Reuters

Building-Products.com U.S. Census Bureau

Bureau of Economic Analysis

Eurostat

Freedonia

Global Industry Analysts

IBIS

New York Times

PNC Economic Outlook

S&P Capital IQ

S&P Leveraged Commentary & Data

The Wall Street Journal

DISCLOSURES

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.

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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