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October 31, 2016
CHS Capital Completes Sale of Fortiline Waterworks

Chicago, IL, October 31, 2016 - Chicago-based private equity firm CHS Capital™ has completed the sale of Fortiline Waterworks (“Fortiline”), a portfolio investment of CHS Private Equity V LP, to MORSCO, Inc. (“MORSCO”). Headquartered in Concord, North Carolina, Fortiline is one of the largest wholesale distributors of underground water, sewer and storm utility products in the United States. CHS invested in Fortiline in January 2007.

CHS worked closely with management to transition the business from a founder owned business with an entrepreneurial strategy to a high-growth, professionally managed, data-driven organization. CHS and management also worked together to craft a growth strategy that encompassed both organic and acquisition-related growth. During CHS’s ownership, Fortiline grew from 16 branches in seven states in 2007 to its current network of 42 branches in twelve states throughout the Southeast, Mid-Atlantic and Midwest. “Tim Tysinger, Mike Swedick, and the entire Fortiline management team did a tremendous job transforming Fortiline into the business it is today,” said Dave Hawkins, Partner at CHS Capital. “Fortiline is well positioned to continue it rapid growth as a result of its outstanding leadership team and its results-oriented culture.”

“Throughout Fortiline’s evolution CHS actively supported our efforts to build a business based on teamwork and metrics-based decision-making which were instrumental to driving our profitable growth,” said Mike Swedick, CEO of Fortiline. “We are grateful for their guidance and support in building this company.”

BB&T Capital Markets and Lincoln International LLC served as financial advisors to Fortiline, and Kirkland & Ellis LLP served as its legal advisor. Vinson & Elkins LLP served as legal counsel to MORSCO.

Headquartered in Concord, N.C., Fortiline is one of the largest wholesale distributors of underground water, sewer and storm utility products in the United States. Founded in 1997, Fortiline distributes more than 75,000 SKUs to a diverse base of more than 4,500 contractor, developer and municipal customers through a network of 42 branches in 12 states in the Southeast, Mid-Atlantic and Midwest. The company’s vision is to be the preferred and most trusted resource for utility infrastructure product solutions and Fortiline backs that with specialty divisions and extensive inventory at locations across the country. www.fortiline.com.

About MORSCO MORSCO is a leading U.S. distributor of commercial and residential plumbing and HVAC supplies. The company was founded nearly 100 years ago in Fort Worth, Texas, and is now one of the fastest growing companies in its market. MORSCO is a private company sponsored by Advent International and led by a team of industry veterans. The MORSCO family of operating units consists of Express Pipe & Supply (CA), Farnsworth Wholesale Company (AZ), Morrison Supply Company (TX, OK, NM, LA, KS), Murray Supply Company (NC, SC, VA), Wholesale Specialties (CO), DeVore & Johnson (GA), Fortiline Waterworks (AL, FL, GA, KS, KY, NC, OH, OK, SC, TN, TX, VA) and MORSCO’s premier showroom offering in these markets, Expressions Home Gallery. For additional information, please visit www.MorscoUSA.com.

CHS Capital is a Chicago-based private equity firm with over 25 years of experience investing in the middle market. Through partnerships with strong management teams, CHS Capital aims to accelerate earnings growth and drive value creation through human capital initiatives, performance improvement actions and strategic growth initiatives. Throughout its history, CHS Capital has made investments in over 400 businesses and invested $2.9 billion of capital. For additional information, please visit www.chsonline.com.