Distribution International has replaced Yellow Point Equity Partners as the principal shareholder of Crossroads C&I Distributors. Headquartered in Edmonton, Alberta, Crossroads is a distributor of insulation and related fabricated products in Western Canada. Distribution International, based in Houston, Texas, is a portfolio company of Audax Group and The CapStreet Group.
Distribution International (“DI”) has replaced Yellow Point Equity Partners as the principal shareholder of Crossroads C&I Distributors (“Crossroads”). Headquartered in Edmonton, Alberta, Crossroads is a leading distributor of insulation and related fabricated products in Western Canada.
DI, based in Houston, Texas, is a portfolio company of Audax Group and The CapStreet Group. The company is a value added distributor of insulation, related specialty fabricated products, and safety supplies to the industrial, commercial, and marine end markets. Together, DI and Crossroads serve customers from distribution centers in Texas, Louisiana, Mississippi, Alabama, Arkansas, Tennessee, Missouri, South Carolina, North Carolina, Virginia, Maryland, New York, Alberta, and British Columbia. The senior management team of Crossroads will continue to manage the company.
Martin Bates, Chief Executive Officer of Crossroads, said “Partnering with DI, Audax, and CapStreet provides Crossroads with additional capital to continue supporting our customers’ growth in British Columbia, Alberta, and the surrounding region. We look forward to working with DI, Audax, and CapStreet as we continue to build the company.”
Doug Waugaman, Chief Executive Officer of DI, said “DI is very excited to be joining forces with Crossroads, as we both consider our strong customer relationships, dedication to superior customer service, and commitment to our employees to be core to our values and culture. We look forward to working with Martin Bates and the Crossroads team in sharing best practices and continuing to support their growth in Canada.”
Young Lee, Managing Director at Audax Group, said “Crossroads is a leading provider of specialty insulation products with a stable customer base in a growing and fragmented industry. The acquisition will provide Crossroads with the capital to support continued growth in Western Canada. There are additional opportunities to grow the company through penetration of adjacent industry verticals, geographic expansion, and strategic add-on acquisitions.”
Paul De Lisi, Vice President at CapStreet, said “We have been impressed with Crossroads’ excellent reputation for customer service and their strong management team. We look forward to partnering with and providing additional resources to Crossroads to better serve its customers in the high-growth Western Canadian industrial and commercial markets.”
Raymond James & Associates, Inc. advised Crossroads. Kirkland & Ellis LLP and Stikeman Elliot LLP served as counsel to Audax and CapStreet.
ABOUT AUDAX GROUP
Audax Group, founded in 1999, is a leading investor in lower-middle market companies. With offices in Boston and New York, Audax has over $4 billion in assets under management in its Private Equity, Mezzanine, and Senior Debt funds.
ABOUT THE CAPSTREET GROUP
The CapStreet Group, founded in 1990, focuses on investments in lower middle market, privately-held businesses headquartered in Texas and other Sunbelt states. Since inception, the firm has raised approximately $700 million of private equity capital.
SOURCE: Audax Group