HVACR

Q1 2018
TABLE OF CONTENTS
 M&A Overview
 Why Owners Liquidate
 Subsector Activity
 Select Transactions
 Case Study
 Firm Track Record
HIGHLIGHTS
 Total value of HVACR transactions in North America during 2017 was the
highest in over 25 years
 Actual number of HVACR transactions in North America in 2017 was the
lowest since 2002

CONTRIBUTORS  Middle-market transactions > $50 million in enterprise value (EV) are trading
in the 7.25-10x of EBITDA and are based on the highly engineered product
Len LaPorta
Managing Director
203-813-3880 x203  Global consolidation in the HVACR sector continues to be pronounced with
llaporta@capstoneheadwaters.com an estimated 117 deals were announced or completed in 2017
Hilary Morrison
Vice President
917-763-0121
hmorrison@capstoneheadwaters.com

www.capstoneheadwaters.com January 2018

 HVACR | Q1 2018

M&A OVERVIEW
Global HVACR Market estimated to reach $122.0 billion by 2020

Global 2017 Deal Volume by Subsector

Distributor  There have been an estimated 117 deals announced or

16.0% 13.6% 2.5%
Cooling completed in 2017 within the HVACR sector.
4.9%
Heating
 Refrigeration/Cooling Equipment has been the dominant
12.3% HVAC Equipment subsector in terms of transactions, representing roughly 20.0%
Industrial Heat/Cooling of 2017 deals.
14.8%
Refrigeration/Cooling Equipment
 Transactions within the Industrial Heating and Ventilation/Air
19.8% Services Filtration subsectors also accounted for a large share of the
16.0% consolidation, each representing 16.0% of all the deals within
Ventilation/Air Filtration
the space.

Global 2017 Deal Volume by Deal Class

 By deal class, corporate buyers of HVACR companies were most
2.5% active in 2017.
Corporate
 The largest deal with disclosed financials was Cheung Kong’s
Private Equity
acquisition of Reliance Home Comfort, a provider of residential
Individual and commercial energy saving services, for $3.6 billion.
37.0%
 Nibe continued to be an active acquirer during the year as the
60.5% company continues its focus on adding brand names to its
portfolio.

 Private equity buyers represented 37.0% of HVACR transactions

in 2017 with notable transactions including Lindsay Goldberg’s
acquisition of Big Ass Fans for $500.0 million and Warburg
Pincus’ acquisition of Service Logic for $315.0 million.
Chart sources: Capital IQ and The Freedonia Group 2
 HVACR | Q1 2018

M&A OVERVIEW (CONTINUED)

Global Middle Market HVACR M&A Activity

 Of the transactions with disclosed financial metrics, deal volumes have been the highest for HVACR companies trading at less than $25 million.
 Both 2007 and 2008 were “boom” years for all middle market transactions across deal size.

Enterprise Value <$25 Million Enterprise Value $25-$50 Million

60 16
14

Number of Transactions
Number of Transactions

50
12
40 10

30 8
6
20
4
10 2

0 0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Enterprise Value $50-$100 Million Enterprise Value $100-$250 Million

18 14
16 12
Number of Transactions
Number of Transactions

14
10
12
8
10
8 6
6 4
4
2
2
0 0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Source: Capital IQ
3
 HVACR | Q1 2018

M&A OVERVIEW (CONTINUED)

HVACR Activity During M&A Cycles
M&A Deal Volume: North America
For the Years Ended December 31, 1990 - 2017
 M&A markets tend to follow economic
cycles with upswings of approximately 8 Years 5 Years 8+ Years
20,000 $3,000
5-8 years followed by downturns of

Number of Transactions
roughly 2-3 years.

US Dollars (in Billions)

$2,500

15,000 $2,000
 Participants are cautiously optimistic
expecting good times to continue, with $1,500
neither vast a upswing nor a
catastrophic decline. 10,000 $1,000

$500

5,000 $0

2017F
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
HVACR M&A Deal Volume: North America
For the Years Ended December 31, 1990 - 2017
 There was a downtick in HVACR deal 80 8 Years 5 Years 8+ Years
activity in 2017, possibly reflecting
70
quality HVACR companies being in short
Number of Transactions

supply following abundant activity. 60

50
 In addition, the prior wave of HVACR
consolidation occurred in 2012/2014, 40
suggesting acquisitions have largely
30
completed their transition under new
parents, freeing companies to focus 20
more on gaining market share and also
10
raising the intensity of the competitive
landscape for smaller players. 0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Note: No transaction value provided for undisclosed deals
Source: Capital IQ 4
 HVACR | Q1 2018

WHY OWNERS LIQUIDATE: DRIVING FACTORS

 Age  Cash Flow Needs

 Health  Capital Needs
 Successor  Key Employee Risks
 Family Issues  Key Customer Risks
 Liquidity  Cost Issues
 Diversification  Competitive Pressures
 Estate Planning  Inability to Address
 Partner Conflict Personal Business Opportunity
 Unsolicited Offer

Environment Industry

 Policy Changes
 Regulatory Risk  Structural Changes
 Benefit Complexity  Disintermediation
 Market Conditions  Commodification

5
 HVACR | Q1 2018

ACTVITY BY SUBSECTOR

H
Within the Heating/Industrial Heating subsector, 17 deals were announced or completed in 2017, representing 21.0% of HVACR deal flow.
Notable transactions include:
 Spirax-Sarco Engineering’s acquisition of Chromalox for $415.0 million, or 2.2x revenue and 10.9x EBITDA.
 Chart Industries’ acquisition of Hudson for $41.0 million or 2.0x revenue and 10.0x EBITDA. The company complements Chart's Energy &
Chemicals segment with the addition of its Fin-Fan brand and other ACHXs, which broaden E&C's end market diversity from primarily
LNG, industrial and natural gas to include HVAC, petrochemical and power generation.
 Electrolux’s acquisition of Kwikot for $246.0 million or 3.2x revenue. The acquisition broadens Electrolux home comfort product range
and offers a strong platform for growth opportunities in Africa.

V
Within the Ventilation/Air Filtration subsector, there were 13 deals announced or completed in 2017, representing 16.0% of HVACR deal flow.
Notable transactions include:
 Groupe SFPI’s acquisition of JKF Industries for $1.1 billion. The acquisition strengthened Groupe SFPI's NEU air handling unit.
 Volution Group’s acquisition of VoltAir Systems for $11.0 million, or 1.3x revenue and 6.6x EBITDA. VoltAir strengthens Volutions Group’s
market position in the Nordic region.

AC Within the Air Conditioning/Cooling subsector, two pure play deals were announced or completed in 2017, representing 2.5% of HVACR
deal flow.
 Notable transactions include Lindsay Goldberg’s acquisition of Big Ass Fans for $500.0 million or 2.1x revenue.

R
Within the Refrigeration subsector, 16 deals were announced or completed in 2017, representing 19.8% of HVACR deal flow.
 Cold chain was the leader in deal flow for 2017.
 Notable transactions include Nidec's acquisition of Secop (nka Nidec Global Appliance Germany) for $213.0 million. The acquisition
considerably broadens Nidec's product portfolio with sizeable synergy potential.

S
Within the HVAC Services subsector, 10 deals were announced or completed in 2017, representing 12.3% of HVACR deal flow.
Notable transactions include:
 Cheung Kong’s acquisition of Reliance Home Comfort for $3.6 billion. The Reliance Home Comfort sale was the only instance of Chinese
investment in Consumer Products and Services in Canada for 2017, as well as the largest acquisition made by a Chinese firm in Canada
during the year. The acquisition is also the largest instance of Chinese investment in a Canadian firm based east of Alberta.
 Warburg Pincus’ acquisition of Service Logic for $315 million of 1.6x revenue. Service Logic, the largest independent provider of
aftermarket maintenance, repair, and replacement services for commercial HVAC equipment and building automation and control
systems. Service Logic was previously owned by Sterling Investment Partners, where the company completed 11 acquisitions during
Sterling’s ownership.
6

SELECT TRANSACTIONS: HEAT
Date Target Description Buyer
Designer and manufacturer of heat transfer equipment
designed to reduce heat during oil refining and liquid natural
gas production. The company's heat transfer equipment
primarily include air cooled heat exchangers and axial flow
09/20/17 Hudson fans, powered by fluid dynamics modeling and offered to Chart Industries
some of the largest processors in petroleum, chemical, gas
processing, power generation and electric utility industries,
enabling clients to predict or solve hot-air re-circulation
problems in new or existing plants.
Provider of advanced thermal technologies designed to
manage industrial heating applications. The company's
industrial heaters and systems, Heat Trace and Component
Technologies segments offer heating system for revenue- Spirax-Sarco
07/04/17 Chromalox generating industrial processes, temperature management
Engineering
system for piping systems, valves and tanks and component
heating management respectively providing industries thermal
system and its management facilities.
Manufacturer of heating products. The company's heating
products consists of cartridge heaters, positive temperature
coefficient heaters, strip heaters and heating systems including
highly engineered heating services for heating, ventilation and
05/01/17 HT (Italy) NIBE Industrier
air conditioning, commercial food products, packaging and
other industrial applications.
Manufacturer of heat exchangers, electrostatic precipitator
components and related fabrication. The company's heat
exchangers, electrostatic precipitator components and related
fabrication uses every appropriate testing technique, including
Thermal X-ray, dye penetrant, hydrostatic and pneumatic pressure
04/05/17 Wabtec
Transfer testing and provide innovative and durable services in
industrial applications where high temperatures and corrosive
elements are present.
Manufacturer of hot water systems. Offers electric and solar
water heaters, heat pumps, consumables and accessories for
both domestic and industrial usage. Its products are sold in
03/01/17 Kwikot Electrolux
South Africa and neighboring countries.
HVACR | Q1 2018
Implied EV Implied Implied Country
(million, USD) EV/Revenue EV/EBITDA Deal Synopsis HQ
The company was acquired by Chart Industries
(NAS: GTLS) for $410 million on September 20,
2017. The company complements Chart's Energy
& Chemicals segment with the addition of its Fin-
$410.0 2.00x 10.0x Fan brand and other ACHXs which broaden E&C's United
end market diversity from primarily LNG, States
industrial and natural gas to include HVAC,
petrochemical and power generation.
The company was acquired by Spirax-Sarco
Engineering (LSE: SPX) for $415 million on July 4,
2017. The purchase consideration will be financed
from new debt facilities supplied by acquirer's United
$415.0 2.2x 10.9x existing banks.
States
The company was acquired by NIBE Industrier
(STO: NIBE B) for an undisclosed amount on May
1, 2017. The acquisition of HT adds another well-
known brand to NIBE's European element
- - - Italy
business providing cost synergies and commercial
advantages to the NIBE Group. Their market and
technical position and customer base will provide
yet another platform for profitable growth.
The company, a subsidiary of Hamon & Cie
International (BRU: HAMO) was acquired by
Wabtec (NYS: WAB) for $32.5 million on April 5,
2017. This acquisition will be an excellent
strategic fit with Wabtec's existing heat exchanger United
$33.0 1.3x -
products for rail and industrial markets. The States
company offers a broad portfolio of heat transfer
solutions for niche applications, which will enable
Wabtec to diversify its product and market
applications further.
The company was acquired by Electrolux (STO:
ELUX A) for ZAR 3.18 billion on March 1, 2017.
The acquisition broadens Electrolux home South
$247.0 3.2x -
comfort product range and offers a strong Africa
platform for growth opportunities in Africa.
Source: Pitchbook
7
 HVACR | Q1 2018

SELECT TRANSACTIONS: VENTILATION/AIR FILTRATION

Implied EV Implied Implied Country

Date Target Description Buyer (million, USD) EV/Revenue EV/EBITDA Deal Synopsis HQ

The Krantz Germany business of Caverion (HEL:

CAV1V) was acquired by STEAG Energy Services
Manufacturer of air distribution systems intended to provide
Caverion for an undisclosed amount on December 28,
home ventilation. The company's products include exhaust STEAG Energy
12/28/17 (Krantz - - - 2017. Divestment is in line with Caverion's new Germany
gas filtration, dampers, façade, cooling systems and other Services
Germany) strategy and transformation towards service
related products, enabling clients to enjoy quality products.
business, whereas the product business is not
Caverion's core business.

Provider of ventilation and exhaust products. The company's

ventilation and exhaust products include dust and fume
The company was acquired by Multi Fan Systems
control, warm air heating plant & process tanks in mild steel
for an undisclosed amount on October 25, 2017.
or stainless, thermoplastics, bifurcated, centrifugal fans and Multi Fan United
10/25/17 Modus Air - - - The acquisition will increase Multi Fan Systems'
exhaust ducting systems with GRP facility and scrubber units, Systems Kingdom
presence across a number of key markets and
enabling aerospace, automobile, iron & steel and rubber
enhance their range of services offered.
industries to get quality and cost effective ventilation and
exhaust products as per requirement.

Manufacturer of components for process ventilation and air The company was acquired by Groupe SFPI (PAR:
filtration systems. The company offers an innovative range of SFPI) for EUR 898.43 million on July 28, 2017. The
JKF
07/28/17 fans, filters, dust collectors and ducts to companies in the Groupe SFPI $1,056.0 - - transaction was financed mainly by a bank loan. Denmark
IndustriA/S
woodworking, milling, agriculture, recycling and meal The acquisition strengthened Groupe SFPI's NEU
industries. air handling unit.

Air Filtration
Holdings, The company was acquired by Air Filtration
Manufacturer and marketer of disposable air filtration
Duchossois Holdings, via its financial sponsors The Edgewater
products. The company's air and paint filtration products are United
07/12/17 Viskon-Aire Capital - - - Funds and Duchossois Capital Management,
used in a wide variety of applications in commercial and States
Management, through an LBO on July 12, 2017 for an
industrial HVAC as well as paint spray booths worldwide.
The Edgewater undisclosed sum.
Funds

The company was acquired by Volution Group

Manufacturer and supplier of centralized heat recovery
(LON: FAN) for SEK 96.641 million on May 29,
ventilation systems. The company develops, manufactures and
2017. The acquisition will be on a debt free, cash
sells energy efficient air handling units based on proprietary
VoltAir free basis for an initial cash consideration of SEK
05/29/17 technology, providing both prefabricated and on-site built Volution Group $11.0 1.3x 6.6x Sweden
System 79.711 million and further amount of deferred
AHUs with a reputation for high energy efficiency, low
cash consideration of SEK 16.93 million payable
maintenance costs and long service life for residential and
as contingent on VoltAir's earnings for the year
commercial purposes.
ended 31 December 2017.
Source: Pitchbook

8
 HVACR | Q1 2018

SELECT TRANSACTIONS: AIR CONDITIONING/COOLING

Implied EV Implied Implied Country

Date Target Description Buyer (million, USD) EV/Revenue EV/EBITDA Deal Synopsis HQ

Manufacturer of air-conditioning systems created to make

comfort cooling for a greener and smarter future. The
company's air-conditioning systems include energy storage
devices, cooling systems , thermal storage tanks, heat
11/01/17 Calmac
exchangers and related cooling equipment, enabling
architects, engineers, building owners and energy utility
companies to cleaner, night-time energy while reducing the
environmental impact.
The company was acquired by Trane (NYSE: TT), a
subsidiary of Ingersoll-Rand Company (NYSE: IR),
for an undisclosed amount on November 1, 2017.
United
Trane - - - This acquisition is consistent with Ingersoll Rand's
States
strategy to help customers solve climate and
industrial challenges including energy and fuel
efficiency, food waste and productivity.

Maker of fans and lighting fixtures. The company's fans and The company was acquired by Lindsay Goldberg
Big Ass lighting fixtures keep large spaces that lack air conditioning, Lindsay through a $210 million LBO on October 24, 2017. United
10/24/17 $500.0 2.1x -
Fans such as factories and dairy barns, feeling cool and Goldberg The company assumed $290 million in debt as States
comfortable. part of the $500 million deal.

Source: Pitchbook

9
 HVACR | Q1 2018

SELECT TRANSACTIONS: REFRIGERATION

Implied EV Implied Implied Country

Date Target Description Buyer (million, USD) EV/Revenue EV/EBITDA Deal Synopsis HQ

The company was acquired by L.B. White

Manufacturer of evaporative cooling systems. The company Company, via its financial sponsor Mason Well
provides poultry house cooling systems and evaporative L.B. White through an LBO on December 20, 2017 for an
United
12/20/17 Reeves Supply cooling systems helping poultry industry with quality, Company, - - - undisclosed amount. The combined resources of
States
reliability and service as per the industry specified Mason Wells the two companies provide customers enhanced
standards. value through expanded product development,
geographic and market expansion capabilities.

The company was acquired by Middleby

Manufacturer of industrial cooling and freezing equipment. (NASDAQ: MIDD) for an undisclosed amount on
The company's industrial cooling and freezing equipment December 7, 2017. The acquisition further
12/07/17 Scanico include ambient spiral cooler, single stacking freezer, drum Middleby - - - broadens the capabilities of Middleby's food Denmark
freezer, belt freezer, spiral proofer and spiral cooker, processing group with a highly complementary
enabling clients to get impingement and spiral systems. technology to its food processing product
portfolio.
Manufacturer and supplier of cooler equipment designed to
control the thermal environment within a wide variety of
applications. The company's cooler equipment include re-
Applied The company was acquired by Scientific Digital
circulation chillers, water-water heat exchangers and air Scientific Digital United
08/24/17 Thermal $2.0 1.0x 8.9x Imaging (LON: SDI) for GBP 1.2 million on August
blast coolers, enabling scientific instrument support market Imaging Kingdom
Control 24, 2017.
to prevent damage to components, reduce distortion in
processes, improve repeatability and stability in analysis
and remove heat from chemical reactions.
Manufacturer of hermetic compressors intended to increase
value for their customers. The company uses leading The company was acquired by Nidec (TKS: 6594)
Nidec Global
technology to offer compressors and other intelligent for EUR 185 million on July 31, 2017. The
07/31/17 Appliance Nidec $213.0 0.5x - Germany
cooling systems for refrigerators and light commercial acquisition considerably broadens Nidec's
Germany
applications for their clients in the heating, ventilation and product portfolio with sizeable synergy potential.
air conditioning (HVAC) industry.
Developer and manufacturer of temperature zoning
products designed to meet each customer's needs and
specifications. The company's temperature zoning products
The company was acquired by Safe Fleet, via its
Randall which includes refrigerated truck body products- insulated Safe Fleet, The United
01/17/17 - - - financial sponsor The Sterling Group, through an
Manufacturing bulkheads, center divide systems, strip doors and industrial Sterling Group States
LBO on January 17, 2017 for an undisclosed sum.
curtains, insulated covers and blankets enabling food
service delivery companies and owners of refrigerated
trucks and trailers deliver their products at temp.

Source: Pitchbook

10
 HVACR | Q1 2018

SELECT TRANSACTIONS: SERVICES

Implied EV Implied Implied Country

Date Target Description Buyer (million, USD) EV/Revenue EV/EBITDA Deal Synopsis HQ
Five Points
Provider of non-discretionary, residential heating, ventilation Capital North The company was acquired by North Branch
Randazzo
and air conditioning replacement and maintenance services. Branch Capital , Capital, Standard Life Aberdeen, Schroder Adveq,
Mechanical United
11/30/17 The company services & replaces furnaces, air conditioning Schroder Adveq - - - Five Points Capital and its management through
Heating & States
units, humidifiers, thermostats, water heaters and other Management, an LBO on November 30, 2017 for an undisclosed
Cooling
ancillary units. Standard Life sum.
Aberdeen
Provider of heating, ventilation and air conditioning
maintenance services. The company offers services such as
preventative maintenance, repair and up-gradation through
Service The company was acquired by Warburg Pincus United
07/31/17 its co-branded business units Engineered Cooling Systems, Warburg Pincus $315.0 1.6x -
Logic through a $315 million LBO on July 31, 2017. States
FacilitTech, Midwest Mechanical, Piedmont Service Group,
PSR Mechanical and Tolin Mechanical for commercial,
industrial and institutional customers.
The company was acquired by Cheung Kong .
Provider of residential and commercial energy saving This acquisition is significant for two reasons:
services. The company sells, rents and maintains heating, first, according to the China Institute's Investment
Reliance
ventilation, air conditioning equipment, furnaces, HVAC Tracker Database, the Reliance Home Comfort
07/13/17 Home Cheung Kong $3,615.0 - - Canada
heating and cooling systems, water heaters. It also offers sale was the only instance of Chinese investment
Comfort
plumbing services, protection plans, installation, in Consumer Products and Services in Canada for
maintenance and other related services. 2017, and the largest acquisition made by a
Chinese firm in Canada so far this year.
Provider of mechanical, plumbing, HVAC and engineering
designing services. The company's fabrication and Dunes Point The company was acquired by Industrial Group
Coenen installation of process piping systems and sheet metal along Capital, Holdings, via its financial sponsor Dunes Point United
05/10/17 - - -
Mechanical with maintenance services are offered to clients in pulp and Industrial Capital, through an LBO on May 10, 2017 for an States
paper, food, converting and packaging, water treatment and Group Holdings undisclosed amount.
general industry.
The company was acquired by Chart Lifecycle, a
Provider of aluminum heat exchanger repairs, specialized subsidiary of Chart Industries (NASDAQ:GTLS) for
welding on hydrogen reformers, cold box refurbishments, fin $22 mm. The Hetsco and Chart Lifecycle
sampling, cold box inspections, source inspections for brazed combined business will focus on extending
aluminum heat exchangers and engineering consulting equipment lifespan by offering services from
services. The company offers shop fabrication services, installation/start-up, operations/maintenance, United
01/17/17 Hetsco Chart Industries $22.0 - -
including on-site or shop fabrication of aluminum and training/support, monitoring, process States
stainless steel process piping, unfired pressure vessels and optimization, repair/maintenance and extended
welded assemblies. It also has weld procedures for various warranty. This acquisition supplements Chart's
materials, such as aluminum, carbon steel, low alloy steels, current offering by bringing a full suite of welding
stainless steel and nickel base alloy. services for industrial gas and gas processing
facilities.
Source: Pitchbook

11
 HVACR | Q1 2018

CASE STUDY: NONWOVEN FABRIC FILTRATION PRODUCTS

 According INDA’s data and forecast analysis, the strength of the economy Filtration Sales in North America:
and demographic trends are significant drivers of demand within the Percentage Growth Since 2011
North American nonwoven industry.
Liquid Filtration Air Filtration
 Growth is expected to be driven by positive momentum in many of
filtration’s key drivers including: heightened consumer awareness and
sensitivity to pollution, increasingly stringent legislation and regulatory
controls, growth in the transportation market, and continued strength in 5.6%
both residential and non-residential construction.
4.6%
 Disposable nonwoven sales to end users in North America are forecast to
increase to 2.2 million tons, a 2.3% annual growth.
5.8%
 Given the nonwoven industry is well poised for significant growth across 5.1%
end-markets, M&A appetite has been high for non-woven companies.
Both paper companies such as Glatfelter and Neenah, and adjacent
companies, such as Berry Plastics and AstenJohnson have actively been
making acquisitions in the space. 2011 2016 2021f

Historical & Forecast in Tonnes of Nonwoven Demand by End-Use

5%
Other
4% Disposable Filtration
Filtration
Applications Wipes
3%
CAGR (2011-2016)

2%
Medical/
1% Surgical

0%
0% 1% 2% 3% 4% 5%
-1% CAGR (2016-2021 Forecast)
Absorbent
Absorbent
-2% Hygiene
Hygiene
-3%
Source: INDA, Association of the Nonwoven Fabrics Industry North
American Nonwovens Industry Outlook Report Contact Brad Kalil 12
 HVACR | Q1 2018

CASE STUDY: AMETECK

 Headquartered in Lexington, Kentucky, Amteck is one of the most prominent design/build electrical firms
headquartered in the Southeast. Its turnkey electrical services capabilities cover engineering and design, the
prefabrication of devices and contracting as well as specialty services such as managed maintenance
programs, cabling and fire alarm services. The company has national footprint supporting the expansion
efforts of a leading client base across various industries.

 A second generation business, the majority owner was seeking an investment partner in order to achieve
some liquidity but also wanted to continue an active role in the business going forward. Capstone was hired
to run a process to find the right partner for the business for a majority recapitalization.
has been acquired by
 Capstone managed a marketing process for the owners and targeted private equity groups interested in the
engineering, construction and electrical services sectors.

 The company was recapitalized by Trive Capital, a Dallas-based private equity firm which is an experienced
investor in the engineering and construction sector. Trive emerged as the most credible potential partner and
appeared to have the acumen and operational experience needed to help Amteck best tackle its growth
initiatives.

Absorbent
Hygiene

13
 HVACR | Q1 2018

FIRM TRACK RECORD

an asset of

has acquired has been acquired by has been acquired by

has been acquired by

Admiral Valve, LLC

has acquired

has been acquired by has recapitalized with has been acquired by

and

14
 HVACR | Q1 2018

HVACR REPORT CONTRIBUTORS

Len LaPorta
Managing Director
llaporta@capstoneheadwaters.com | 203-813-3880 x203

Len has developed significant relationships with global manufacturing firms and financial sponsors focused in the industrial and
manufacturing sectors. Prior to becoming a banker, he focused on deal generation for several financial sponsors seeking platform
acquisitions involving highly-engineered products. Len has carved out a niche within the sector by focusing on US, Switzerland and
German-based firms.

Earlier in his career Len founded Crystal R&D, an FDA registered precision contract manufacturer focused on aerospace and medical device
sectors. Through acquisitions, he transformed the firm's operations and quality systems and was named a global supplier to C.R. Bard in
2006. Len's firm utilized the latest CNC machines to manufacture exacting tolerance components for the Bard Salute Laparoscopic
Disposable Fixation Device. Len personally revamped the entire supply chain over several years to provide scalability in becoming a world-
class manufacturer.

Len received his undergraduate degree from the US Naval Academy in 1987 and served with distinction as a Surface Warfare Officer for six
years. He received his MBA from Boston College.

Hilary Morrison
Vice President
hmorrison@capstoneheadwaters.com | 917-763-0121

Hilary Morrison is a Vice President in the Manufacturing and Industrials Group, bringing 10+ years of experience spanning Investment
Banking and Equity Research.

Prior to Capstone Headwaters, Hilary worked as a Vice President on the #1 rated Textile Manufacturing team at Lehman Brothers. She has
significant public company expertise with a focus on Industrials and Manufacturing M&A and carve-outs. She has also worked on
numerous strategic advisory and company valuation assignments.

Hilary graduated from Texas Christian University - M.J. Neeley School of Business, where she received her degree in International Finance
and French.

15
 EXTENDED INDUSTRIAL MANUFACTURING TEAM

David Bench Ian Cookson Darin Good Ted Polk

Managing Director Managing Director Managing Director Managing Director
949-460-6431 617-470-9338 303-549-5674 312-674-4531
dbench@capstoneheadwaters.com icookson@capstoneheadwaters.com dgood@capstoneheadwaters.com tpolk@capstoneheadwaters.com

Mike Schumacher Doug Usifer Tracy Patch Lisa Tolliver

Managing Director Managing Director Director Director
917-789-2513 908-432-7792 949-460-6432 312-674-4532
mschumacher@capstoneheadwaters.com dusifer@capstoneheadwaters.com tpatch@capstoneheadwaters.com ltolliver@capstoneheadwaters.com

16
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Los Angeles • New York • Orange Finland • France • Germany • Hungary • India
County • Philadelphia • San Diego Ireland • Italy • Japan • Mexico • Morocco
San Francisco • St Louis • Tampa Netherlands • Norway • Peru • Poland • Russia
Washington DC Spain • Sweden • Switzerland • Turkey
United Arab Emirates • United Kingdom
United States • Vietnam

Capstone Headwaters is an elite investment banking firm dedicated to serving the corporate finance needs of middle market business owners, investors and
creditors. Capstone Headwaters provides merger & acquisition, private placement, corporate restructuring and financial advisory services across 16 industry verticals
to meet the lifecycle needs of emerging enterprises. Headquartered in Boston, MA and Denver, CO, Capstone Headwaters has 20 offices in the US, UK and Brazil
with a global reach that includes over 300 professionals in 34 countries.

www.capstoneheadwaters.com