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Kelso Fund IX Exits Investment in SouthernCarlson

June 3, 2019

Kelso is pleased to announce that on June 3, 2019 we closed the sale of SouthernCarlson to Kyocera Corporation

SouthernCarlson is a leading distributor of fastening and packaging products and supplies across 36 states, Canada and Mexico. SouthernCarlson serves contractors, dealers, retailers and manufacturers in construction and industrial end markets through its network of 150+ branch locations and 22 distribution centers.

Following Kelso’s investment in US LBM, the deal team identified SouthernCarlson as a similar best-in-class distribution business with a strategy to build a national footprint via acquisitions. Kelso developed a dialogue with the prior owners of SouthernCarlson and expressed an interest in acquiring the Company in a privately negotiated transaction. Kelso’s experience within the building products distribution sector and with roll-up strategies enhanced diligence and provided unique insight into the market, resulting in a proprietary transaction outside of a process at an attractive purchase price. Kelso and management executed on an agreed upon strategic value creation plan, completing eight acquisitions, making key leadership additions and continuing to grow the business organically with the support of strong underlying industry fundamentals.