July 20, 2012 – Yellow Point Equity Partners II LP (“Fund II”) is pleased to announce that it has successfully exited its investment in Crossroads C&I Distributors (“Crossroads”). On July 20, 2012, Fund II sold its majority stake in Crossroads to Distribution International, a Houston-based insulation distribution company.
Crossroads is a leading distributor of insulation and related fabricated products in western Canada. Partnering with the leading global insulation manufacturers, the company services both commercial and industrial construction and maintenance projects. Crossroads is the primary supplier of pipe insulation and related products to most of the current Canadian oilsands construction projects.
David Chapman, managing partner of Yellow Point Equity Partners, said “Crossroads has been a great partnership for everyone involved. In recent years, the company’s focus on same-day delivery and becoming a one stop shop really resonated with customers and led to significant demand for Crossroads’ products and services. Our management partners have done an exceptional job in growing the company into the leader in its industry, and in doing so have created significant value for all stakeholders. In particular, I am delighted to see that our management co-investors who risked their own capital in partnership with Yellow Point have made substantial returns on their investments.”
Bill Haun, chairman of Crossroads, added “My previous ownership partners and I initially turned to Yellow Point to help realize our succession plans. The firm has done that and more. Yellow Point brought in a new CEO, encouraged the pursuit of several fruitful growth initiatives, and proved to be a supportive and value-added addition to the board. The success of the company now speaks for itself.”
About Yellow Point
Yellow Point Equity Partners is a private equity investment firm with significant operating and investment experience. It invests in outstanding management teams of later-stage growth companies based primarily in western Canada and aims to be the long-term partner of choice for Canada’s leading mid-market companies. Yellow Point’s approach is supportive, hands-off with respect to day-to-day operations and active when it comes to strategic decisions and board work.
For more information, please either contact David Chapman or visit www.ypoint.ca.