October 4, 2010

Duncan Industrial

Dallas, Texas — Bill Scheller, a long-time industrial distribution executive, and Brazos Private Equity Partners, LLC, a leading Dallas-based private investment firm, today announced the acquisition of Duncan Industrial Solutions Inc., a industrial distributor focused on integrated supply solutions. Financial terms of the transaction were not disclosed.

Founded in 1948, Duncan Industrial Solutions, Inc., is a leading distributor of name-brand industrial MRO supplies and equipment. Duncan Industrial also offers specialized, integrated services that deliver tailored solutions for inventory and spend management, point of use, product issuance, product application, information management and other services within the client's operations. Headquartered in Oklahoma City, Oklahoma, Duncan Industrial has employees working in offices and client facilities across North America.

Bill Scheller, CEO of BlackHawk Industrial, said: "We continue to attract and acquire the best local distributors in a given market to become part of our business we are building in North America."

Duncan Industrial is the initial acquisition of BlackHawk Industrial Distribution, Inc., a new industrial distribution platform Brazos is building in conjunction with Mr. Scheller. Mr. Scheller, former CEO and President of ORS Nasco, Inc. which was a previous Brazos portfolio company, will serve as the CEO of BlackHawk. BlackHawk is currently looking to acquire additional U.S. based distributors participating in the $400+ billion industrial distribution end market.

Mr. Scheller said: "BlackHawk will be an excellent platform to create one of the leading industrial distribution companies in the U.S. I am excited to partner again with Brazos and look forward to working with the Duncan team. Duncan has demonstrated strong performance since it was founded in 1948 and will continue to operate its business in the same fashion going forward. Our commitment to Duncan's strategic plan, customers, suppliers, employees and business model will continue to be the foundation upon which we grow our business."

Brazos Co-Chief Executive Officer and Co-Founding Partner Randall S. Fojtasek said: "This transaction for BlackHawk represents the initial step to create a leading company to serve the large and growing industrial distribution market. We look forward to working closely with Bill and the rest of management as they build upon Duncan's historical success to take performance and value to the next level."

David Mann, Brazos Partner, added: "We are excited to invest in the industrial distribution industry again. BlackHawk has a tremendous opportunity to build a business with significant scale through an active buy-and-build strategy."

Background of Bill Scheller

Prior to BlackHawk, Bill was most recently CEO of ORS Nasco, one of the largest, pure wholesale distributors of industrial supplies in North America. Bill has held leadership positions for almost 30 years at companies such as Pillsbury, Patterson Companies, as well as ORS Nasco. During nine years at ORS Nasco, Bill provided the overall leadership and direction for the company in North America. ORS Nasco experienced significant revenue and earnings growth, improved operations and working capital efficiency and enhanced its sales and marketing capabilities. These efforts led to the successful sale of ORS Nasco to United Stationers, Inc. in 2007.

About Brazos Private Equity Partners, LLC

Brazos Private Equity Partners is a Dallas-based private equity firm that manages approximately $1.4 billion of equity capital. Brazos focuses on investments in middle-market companies with enterprise values up to $500 million. Brazos seeks to partner with outstanding management teams and/or families of closely-held businesses to maximize value. Brazos has been one of the most active middle-market private equity investment firms over the past decade, having completed 55 acquisitions, including 21 platform investments. Brazos has invested in a broad range of industries including consumer, food and beverage, business and financial services, healthcare, manufacturing / industrial and distribution.

Brazos has significant experience acquiring, growing and monetizing distribution businesses. Since 2002, Brazos has invested in four successful distribution companies. Below is a brief overview of these investments.

  • ORS Nasco, Inc. is one of the largest, pure wholesale distributors of industrial supplies in North America.

  • Shelter Distribution, Inc. is one of the largest wholesale distributors of roofing products and related accessories in the Midwest/Southwest U.S.

  • Strategic Equipment and Supply Corporation is a leading national provider of foodservice equipment and supply solutions.

  • TriNorthern Security Distribution, Inc. the second largest distributor of low-voltage products in the U.S.

Michael Freitag
Kekst and Company
For Brazos Private Equity Partners, LLC
212-521-4896

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