Distribution International Announces Merger with Thorpe Products

Thorpe Products and DI will operate under the Distribution International trade name and management teams from both companies will run the combined entity . . .

Houtson, TX - Distribution International ("DI"), an Audax Group portfolio company, announced it has completed a merger with Thorpe Products, a portfolio company of The CapStreet Group ("CapStreet"). Both headquartered in Houston, Texas, Thorpe Products and DI are distributors of insulation, related specialty fabricated products and safety supplies serving customers throughout North America. DI was acquired by Audax Group in August 2010. Since Audax' initial investment, DI has acquired Blackhawk Specialty Company of Port Arthur, Texas in December of 2011 and IDC Corporation of Long Island City, New York in March 2012. Thorpe Products was acquired by CapStreet in November 2010. Since CapStreet's initial investment, Thorpe Products acquired Integrated Distribution Services, Inc., based in St. Louis, Missouri with branches in Arkansas and Tennessee in July 2011. Together, DI and Thorpe Products serve industrial, commercial building and marine end markets from distribution centers in Texas, Louisiana, Mississippi, Alabama, Arkansas, Tennessee, Missouri, South Carolina, North Carolina, Virginia, Maryland, and New York. Thorpe Products and DI will operate under the Distribution International trade name and management teams from both companies will run the combined entity.

Young Lee, Managing Director of Audax Group, said "DI is a leading provider of specialty insulation products with a stable customer base in a growing and fragmented industry. The merger with Thorpe Products strengthens and expands DI's footprint in the Gulf Coast and Midwest United States. We will continue to work with management and our new partners at CapStreet to grow the company through penetration of adjacent industry verticals, geographic expansion, and strategic add-on acquisitions."

Paul De Lisi, Vice President of The CapStreet Group, said "We are excited to partner with Audax to bring together two leading companies in the specialty insulation distribution market. CapStreet and Audax are aligned in our desire to build the premier North American insulation distribution company through acquisitions and new branch openings."

Doug Waugaman, Chief Executive Officer of DI, said "This is an exciting development for Distribution International, our employees, customers, and vendors. The merger positions us as a leading distributor of specialty insulation in North America. Thorpe Products' superior reputation for customer service coupled with an exceptional management team makes them a natural fit with DI. We look forward to working with Robert Hlavenka and the Thorpe Products team to share best practices and continue building our business as the best in class distributor."

Robert Hlavenka, Chief Executive Officer of Thorpe Products, said "This merger is a positive outcome for our employees and customers. In merging with DI, we will expand our product offering, geographic footprint and fabrication capabilities, while maintaining the standards of service that our customers have come to expect. I look forward to working with Doug Waugaman and the DI team as our management teams share a common focus on providing the very best in customer service."

Lazard Middle Market LLC served as M&A advisor to Audax Group. GulfStar Group, Inc. served as M&A advisor to CapStreet Group. Kirkland & Ellis LLP served as counsel to Audax Group. Vinson & Elkins LLP served as counsel to CapStreet Group.


Audax Group, founded in 1999, is a leading investor in lower-middle market companies. With offices in Boston and New York, Audax has raised in excess of $5.0 billion of equity, mezzanine debt, and senior loan capital. For more information visit the Audax Group website www.audaxgroup.com .


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. For more information visit The CapStreet Group website www.capstreet.com