BlackHawk Industrial acquires Fuchs Machinery

| BlackHawk Team

Tulsa, Oklahoma — BlackHawk Industrial Distribution, Inc. today announced the acquisition of Fuchs Machinery, Inc., a leading industrial distributor serving the MRO marketplace. Based in Omaha, Nebraska, Fuchs Machinery is the third acquisition of BlackHawk Industrial and follows the recent acquisitions of Oklahoma-based Duncan Industrial Solutions and Arkansas-based Rogers Industrial. With the Fuchs Machinery acquisition, BlackHawk expands its geographical footprint into the Midwest and Northern Rockies regions of the U.S with new locations in Omaha and Denver. Financial terms of the transaction were not disclosed.

Founded in 1923, Fuchs Machinery is one of the premier industrial distributors of MRO supplies and equipment in the Nebraska and Colorado markets. Bill Scheller, CEO of BlackHawk Industrial, said: "We are excited to add the employees of Fuchs Machinery as part of growing family of operating divisions within BlackHawk Industrial. Fuchs Machinery, led by Tom Berger, has a very long history of strong customer and vendor relationships in its local marketplace. We believe that Fuchs Machinery will be further enhanced as part of Blackhawk Industrial as a result of additional operating scale, management resources and a broader product offering.

Mr. Scheller also added: "BlackHawk is looking to acquire additional U.S. based distributors participating in the $400+ billion industrial distribution market. Fuchs Machinery is a great example of the type of acquisitions we are looking to add to BlackHawk Industrial."

Fuchs Machinery is a strong regional player with a great reputation that maintains a leadership and business culture that values its customer and vendor relationships while maintaining its ability to have a strong technical and value added selling focus in the local market.

BlackHawk Industrial will look to Tom Berger to continue to lead the Fuchs Machinery Division. Mr. Berger will be a valued member of the BlackHawk Industrial commercial leadership team on a go forward basis. Tom is well-respected in the industry and currently serves on the Board of Directors of supplyFORCE. Mr. Scheller said: "We look to Tom to continue to grow the Fuchs Machinery Division of Blackhawk Industrial both organically and through future acquisitions in its local marketplace. Our goal is to add new sales and customer service resources to deepen our penetration in the local markets."

Mike Fuchs said: "We have been approached many times throughout the years by potential suitors. We believe in BlackHawk's vision and strategy of empowering the local commercial leaders, who intimately know their local marketplaces, customers, and employees. The Fuchs Machinery Division will thrive under the support and structure of the BlackHawk Industrial leadership."

About BlackHawk Industrial

BlackHawk Industrial Distribution, Inc. was formed by Bill Scheller, former CEO of ORS-Nasco, and Brazos Private Equity Partners, LLC, a leading Dallas-based private equity firm, to implement an active buy-and-build strategy in the highly fragmented, $400 billion industrial distribution market.

Background of Bill Scheller

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, LLC is a Dallas-based private equity firm that manages approximately $1.4 billion of equity capital. Brazos seeks to partner with outstanding management teams and/or families of closely-held middle-market 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 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: ORS Nasco, Inc., Shelter Distribution, Inc., Strategic Equipment and Supply Corporation and Tri-Northern Security Distribution, Inc.

Contact
Bill Scheller
President / CEO
BlackHawk Industrial Distribution, Inc.
5460 South Garnett Road - Suite G
Tulsa, Oklahoma 74146
Cell: 918-360-1810
Work: 918-610-4710
Fax: 918-664-5720