PSS Industrial Completes Recapitalization to Strengthen Balance Sheet, Fund Future Growth

Successful recapitalization enables PSS Industrial to shed its debt and access $55 million in new equity capital to position it for long-term success

Transaction ensures uninterrupted operations and payments to all partners

HOUSTON, May 23, 2022 /PRNewswire/ -- Today, PSS Industrial Group ("PSS Industrial Group" or the "Company"), a leading service provider and value-added distributor supplying a diverse base of customers in the energy and industrial industries, successfully completed a recapitalization with the Company's long-term investors that injects $55 million in new equity capital and eliminates all of the Company's debt – significantly strengthening PSS Industrial Group's balance sheet.

"This is great news for our employees and partners and we couldn't be more excited about this support from our long-term investors, which will help strengthen our operations, fuel growth, and position us for future success," said Robert Workman, Chief Executive Officer of PSS Industrial Group. "This transaction injects new capital into our business, while reducing our debt – ensuring we can continue to serve our customers well into the future and presents an exciting path forward that will allow us to reach new heights as an organization.  We greatly appreciate the dedication of our employees and the collaboration of our stakeholders throughout this process."

Highlights of the transaction include:

• Complete deleveraging of the Company's balance sheet;
• $55 million equity investment that will fund growth in all of the Company's divisions, including the Company's new pipe, valves and fittings division;
• Continued payment in full of all of the Company's vendors, suppliers, and other business partners;
• Uninterrupted fulfillment of all customer obligations;
• Current and long-term investors Marblegate Asset Management and Angel Island Capital have become the majority owners of the Company; and
• The Company's current ownership group, including funds managed by Goldman Sachs Asset Management, will continue to have an ownership interest in the Company.

Kirkland & Ellis LLP served as legal advisor, Evercore served as investment banker, and Opportune LLP served as financial advisor to PSS Industrial Group. Akin Gump Strauss Hauer & Feld LLP served as legal advisor and Guggenheim Securities, LLC served as financial advisor to Marblegate and Angel Island. Fried, Frank, Harris, Shriver & Jacobson LLP served as legal advisor to Goldman Sachs Asset Management.

About PSS Industrial Group

PSS Industrial Group is headquartered in Houston, Texas and has approximately 30 locations throughout the United States. PSS Industrial Group is a leading service provider and distributor of specialty equipment, MRO supplies and material handling solutions to the entire energy market value chain, including the upstream, midstream and downstream sectors, as well as industrial markets. For more information about PSS Industrial Group, please visit www.pssigroup.com or email [email protected].

SOURCE PSS Industrial Group