BUILDING PRODUCTS 2015 Annual Review

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1 # of Transactions BUILDING PRODUCTS 215 Annual Review EUREKA CAPITAL MARKETS LLC. MEMBER FINRA/SIPC HIGHLIGHTS Construction Activity Overall housing starts increased to an annual rate of 1,173, units in November from an annual rate of 1,116, units in August. Single-family housing starts grew to an annual rate of 768, units in November from August s annual rate of 734, units. Total construction spending grew.1% to an annual rate of $1.1 trillion in November from August s level. Residential construction spending grew 1.6% over the same period, reaching $434 billion in November. Corporate and Market Performance Public Company Groups For the Nine Months Ending Sept. 3, 215 Stock Price Performance Revenue Growth EBITDA Growth Q4 215 Full Year 215 Manufacturers + 3.5% % + 5.9% + 9.9% Distributors + 2.6% % + 3.% + 15.% Lumber Products - 2.7% % % - 1.2% Aggregates + 2.2% + 3.9% - 8.2% - 14.% M&A ACTIVITY The building products sector recorded 34 announced M&A transactions in the fourth quarter, bringing the total number of transactions for 215 to 151. Q4 highlights include: Beacon Roofing Supply announced three acquisitions this quarter: Statewide Wholesale, a Denver-based distributor of residential and commercial roofing and related products; Roofing & Insulation Supply, a Dallas-based distributor of residential and commercial insulation along with roofing and related products with 2 branches across 13 states, founded in 2, with annual sales of about $7 million; and RCI Roofing Supply, a distributor of residential and commercial roofing and related products with five branches across Nebraska, Iowa and Colorado. PGT Industries acquired WinDoor Incorporated, an Orlando, Fla.-based provider of high-performance, impactresistant windows and doors for five-star resorts, luxury high-rise condominiums, hotels and custom residential homes. The transaction is valued at approximately $12 million, a 2.5x multiple on WinDoor s expected 215 revenues of $41 million. U.S. Building Products M&A Activity 1 Source: Capital IQ, Bloomberg, Company Public Filings, and Press Releases 1. Includes transactions in the construction materials, building products, or building products distribution sectors with at least one U.S. participant. Excludes construction and engineering services providers; tools and machinery manufacturers and distributors; and natural deposits. Backed by Kelso & Company, US LBM Holdings made four acquisitions in Q4: Five NexGen companies, Minn.- and S.D.- based providers of roof and floor trusses, wall panels, framing materials, and other building supplies; Parker s Building Supply, a Texas-based provider of building products with 22 locations throughout Texas and California; Building Supply Association, a Ga.-based provider of exterior building products; and Poulin Lumber, a Vt.-based supplier of building products and hardware with four locations

2 12/31/14 1/31/15 2/28/15 3/31/15 4/3/15 5/31/15 6/3/15 7/31/15 8/31/15 9/3/15 1/31/15 11/3/15 12/31/15 12/31/14 1/31/15 2/28/15 3/31/15 4/3/15 5/31/15 6/3/15 7/31/15 8/31/15 9/3/15 1/31/15 11/3/15 12/31/15 Index Relative Change Index Relative Change Nov-5 May-6 Nov-6 May-7 Nov-7 May-8 Nov-8 May-9 Nov-9 May-1 Nov-1 May-11 Nov-11 May-12 Nov-12 May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 Nov-5 May-6 Nov-6 May-7 Nov-7 May-8 Nov-8 May-9 Nov-9 May-1 Nov-1 May-11 Nov-11 May-12 Nov-12 May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 Thousands of Units Billions of Dollars M&A ACTIVITY (continued) Monomoy Capital Partners acquired Construction Resources and Builder Specialties, merging the two companies to create a platform, Construction Resources, that will be a leading provider and installer of building products in the Southeast. Installed Building Products made three acquisitions in Q4: Prime Energy Group, a N.C.-based installer of spray foam insulation with $8.9 million in annualized revenues; Overhead Door Company of Burlington, a Vt.- and N.H.-based installer of insulation and complementary building products with $7.5 million in annualized revenues; and Sierra and Exo-Tect, two Calif.- based installers of fiberglass and cellulose insulation with a combined $7.6 million in annualized revenues. Boise Cascade Company acquired Georgia-Pacific s Engineered Lumber Business, including production facilities for engineered wood products in Alabama and N.C. for $215 million, including a working capital target of $25 million. With the acquisition expected to add $4 million to Boise s mid-cycle EBITDA, the transaction represents a 5.4x EBITDA multiple. Snow Phipps Group acquired Kele, a Memphis, Tenn.-based distributor of peripheral control products used in commercial building automation systems. The transaction was supported by a $17 million unitranche facility co-lead by Antares Capital and American Capital. Tailwind Capital Group acquired Colony Hardware Corporation, an Orange, Conn.-based distributor of safety equipment, power tools, and other jobsite consumables to contractors in the Northeast, Midwest and Mid-Atlantic commercial construction and public infrastructure construction markets. HOUSING STARTS AND CONSTRUCTION SPENDING U.S. Housing Starts (Seasonally Adjusted Annual Rate) U.S. Construction Spending (Seasonally Adjusted Annual Rate) 2,5 8 2, ,5 1, Total Housing Starts Single Family Residential Non-Residential MARKET PERFORMANCE Distributors and Manufacturers Indices vs. S&P 5 3.% Lumber and Wood Products, Aggregates and Cement, and Heavy Construction Materials Indices vs. S&P 5 4.% 2.% 1.% 15.% 14.1% 3.% 2.% 1.% 23.2%.% -1.% -.7% -6.1%.% -1.% -2.% -.7% -1.2% -14.% -2.% -3.% S&P 5 Index Manufacturers - Mid/Large Cap Distributors Manufacturers - Small Cap S&P 5 Index Aggregates and Cement Lumber and Wood Products Heavy Construction Materials 1. Indices are based on public companies, as listed on the newsletter s Public Company Valuation Multiples table. BMC Stock Holdings, Inc. and TopBuild Corp. are excluded from the Distributors Index.

3 PUBLIC COMPANY VALUATION MULTIPLES (dollars in millions) [1] E multiples for BMC Stock Holdings, Inc. and Huttig Building Products Inc. are based on LTM revenue and EBITDA.

4 SELECTED M&A TRANSACTIONS [1]

5 SELECTED BUILDING PRODUCTS TRANSACTIONS Eureka is proud to have recently advised on a number of engagements in the building products space. 1 Rendered a fairness opinion to the Board of Directors of Roofing & Insulation Supply, Inc. a distributor of residential and commercial insulation and roofing and related products with 2 branches across 13 states, in connection with its sale to Beacon Roofing Supply. RIS was founded in 2 and is headquarteredin Dallas. Advised Security Plumbing & Heating Supply, a Selkirk, N.Y.-based wholesale distributor of plumbing, heating and air conditioning products on its sale to WinWholesale. The company has 12 locations in the lower Mid-Hudson Valley, bringing WinWholesale s location count to more than 57 in 45 states. Advised PHAC Products, an Albany, N.Y.-based B2B distributor of plumbing products, on its sale to WinWholesale. Advised Davis & Warshow, New York City s leading residential and commercial plumbing products supplier, on its sale to Ferguson Enterprises, a division of Wolseley plc. The acquisition of the Maspeth, N.Y.-headquartered, 87-year-old company marked Ferguson s second acquisition in the active metro-new York market. PHAC Products Inc. Rendered a fairness opinion to the Board of Directors in connection with the company s sale to Beacon Roofing Supply WinWholesale WinWholesale Ferguson Enterprises, a subsidiary of Wolseley plc 1 Certain transactions completed by Eureka professionals at prior firms CONTACT INFORMATION Bruce Altman Managing Director bruce.altman@eurekacap.com (646) EUREKA CAPITAL MARKETS, LLC Eureka Capital Partners provides advisory services in the areas of mergers & acquisitions, financial restructurings, capital raising, ESOP buyouts, valuations/fairness opinions and strategic consulting to a wide variety of public and private clients. Eureka conducts its securities transactions through its broker-dealer subsidiary, Eureka Capital Markets, LLC, a member of FINRA/SIPC. Our clients are entrepreneurs, corporate boards, shareholders, executives, financial investment firms, debtors and creditors. Eureka s partners have completed more than 4 domestic and cross-border transactions over their careers. Eureka selectively commits its partners capital as merchant bankers to private equity investments, usually in conjunction with other financial investors. Our team of investment banking professionals has developed a deep understanding of the industrial markets sector. Our recent experience includes advisory assignments in building products, metals, packaging, specialty chemicals, plastics, aerospace components, test and measurement equipment and industrial distribution. Founded in 1993, Eureka has offices in California and New York NEW YORK 52 Vanderbilt Ave, Suite 92 New York, NY 117 Ph: Fx: CALIFORNIA 555 Anton Blvd, Suite 91 Costa Mesa, CA Ph: Fx: This report is for information purposes only and is not intended as an offer or solicitation with respect to any purchase or sale of any security. Eureka Capital Markets, LLC gathers its data from sources it considers reliable; however, it does not guarantee the accuracy or completeness of the information provided within this publication. The opinions presented herein reflect the current judgment of the authors and are subject to change. Eureka Capital Markets, LLC makes no warranties, expressed or implied, regarding the accuracy of this information or the subjective opinions expressed by the authors. Eureka Capital Markets, LLC, its officers, directors and partners may at any time have positions in the securities of the companies discussed herein. 216 Eureka Capital Markets, LLC. All rights reserved. January 216