Merit Capital Partners Completes Three Transactions

Merit Capital Partners has announced three transactions – a majority recapitalization of Crown Products & Services, the acquisition of Structural and Steel Products and an add-on acquisition for U.S. Minerals. Merit has now made 11 platform investments through Merit’s Fund V, which has $612.5 million of committed capital.

PRESS RELEASE

Merit Capital Partners is pleased to announce three transactions, a majority recapitalization of Crown Products & Services, Inc., the acquisition of Structural and Steel Products, Inc. and an add-on acquisition for U.S. Minerals, Inc. Merit has now made 11 platform investments through Merit’s Fund V, which has $612.5 million of committed capital. We continue to actively pursue new investment opportunities in partnership with business owners, management teams, ESOPs and independent sponsors.

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MERIT CAPITAL PARTNERS RECAPITALIZES
CROWN PRODUCTS & SERVICES

Specializes in the formulation and application of proprietary specialty chemicals used to facilitate raw material handling.

In the third quarter of 2012, Merit Capital Partners completed a majority recapitalization of Crown Products & Services in partnership with the company’s management team. Headquartered in Carmel, Indiana, Crown specializes in the formulation and application of proprietary specialty chemicals used to facilitate raw material handling in the coal, steel and utility industries. Crown supplies a turn-key solution to clients by providing the necessary expertise, equipment and chemicals. The Company’s customers include coal producers, coke producers, steel manufacturers, utility companies and industrial companies across the United States. The Company also provides products and services to steel companies in Canada and Eastern Europe.

Merit provided subordinated debt and equity in this investment. Please contact Tom Campion or Jeremy Stump for more details.

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MERIT CAPITAL PARTNERS INVESTS IN STRUCTURAL AND STEEL PRODUCTS

A fabricator and distributor of products for highway construction and infrastructure projects.
In the fourth quarter of 2012, Merit Capital Partners completed an investment in Structural and Steel Products, Inc. in partnership with the Company’s existing shareholders and management team. Headquartered in Fort Worth, Texas, Structural and Steel Products manufactures and distributes products used in the highway construction end-market, including overhead sign structures, guardrails, crash cushions, lighting poles and bridge decking. In addition, the Company manufactures tubular structures used for the communication and power transmission industries. The Company’s customers are primarily located in the Sun Belt region of the United States.

Merit provided subordinated debt and equity in support of this recapitalization in conjunction with several of the Company’s senior executives and existing shareholders. Please contact Ben Yarbrough or Tim MacKenzie for more details.

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MERIT CAPITAL PARTNERS SUPPORTS
AN ADD-ON ACQUISITION FOR U.S. MINERALS

A recycler and processor of industrial minerals for the abrasives and roofing industries.

In the fourth quarter of 2012, Merit Capital Partners supported its existing portfolio company, U.S. Minerals Inc., in the acquisition of ATI Black Diamond Granules, Inc. ATI, headquartered in Woodbury, Minnesota, is a leading manufacturer of roofing shingle granules and sandblasting abrasives. The acquisition of ATI broadens U.S. Minerals’ geographic reach into the Northern Midwest and Southern Canadian marketplaces.

Merit initially invested both subordinated debt and equity to support the recapitalization of U.S. Minerals in December 2010. Please contact Tom Campion or Jeremy Stump for more details.

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Based in Chicago, Merit Capital Partners manages $1.7 billion of capital through five institutionally-sponsored limited partnerships investing mezzanine and equity capital in middle-market companies principally in manufacturing, distribution and services industries. We focus exclusively on high-quality, established businesses with carefully conceived operating strategies with a goal of working with committed owners and strong managers to help increase a company’s enterprise value.
Merit typically invests with management teams and independent sponsors in recapitalizations, acquisitions, management buyouts, and internal expansions and is actively seeking add-on acquisitions for existing portfolio companies. We generally invest between $20 million and $60 million in companies with minimum EBITDA of at least $5 million. Merit Capital Partners was founded in 1993.