[March 20, 2019]

Blue Sage Capital: 2018 in Review

2018 marked the most active year in Blue Sage Capital's 18-year history. The execution of three portfolio company exits, two new platform acquisitions, several tuck-in opportunities, and a number of personnel additions and promotions during the year positions us to continue our strong track record as patient, disciplined, top-quartile investors.

In February 2019, Blue Sage invested in All-State Industries.

Blue Sage Capital completed an investment in All-State Industries ("All-State") in February 2019. Headquartered in Des Moines, Iowa with six manufacturing facilities throughout the Midwest and Texas, All-State is a leading manufacturer of non-metallic components for OEMs across a diverse range of end markets. The company has a demonstrated history of partnering with its customers to design and manufacture solution-oriented products that are used for sealing, acoustics, thermal management, motion control, instrumental panel and impact absorption applications.

In July 2018, Blue Sage invested in Ligchine International Corporation.

Blue Sage Capital partnered with Hanover Partners in July 2018 to invest in Ligchine International Corporation ("Ligchine"). With primary manufacturing facilities in Darien, WI and an additional office in Floyds Knobs, IN, Ligchine is a globally-recognized, leading designer, manufacturer and marketer of laser-guided boom operated concrete screeds. The company produces a diverse range of models under the ScreedSaver™ banner, and Ligchine's products provide best-in-class concrete floor flatness and levelness results for its customers.

During the year, Blue Sage executed a transformative tuck-in acquisition for portfolio company Timber Automation.

Timber Automation acquired VAB Solutions in April 2018 to boost its technology offering and add grading scanners and other optimizers to the product portfolio. Located in Quebec City, Canada, VAB Solutions offers a wide range of technology solutions for lumber production lines from sawing to planing, designed to uncover hidden value in every piece of lumber. VAB became one of the Timber Automation divisions, which also include sawmill and log handling equipment manufacturers.

Prior to the acquisition, VAB was a longtime partner of Timber Automation's with an excellent reputation and solid track record. VAB expands Timber Automation's geographic footprint and product portfolio, offering enhanced access to technical talent through local Canadian colleges and fostering a culture of automation and innovation.

Cobalt (News - Alert) Environmental Solutions, a Blue Sage portfolio company, opened two new saltwater disposal facilities.

Cobalt Environmental Solutions owns and operates energy wastewater injection facilities in the SCOOP and STACK oil provinces. In 2018, we opened two new greenfield facilities, Dibble and Cole, that will meaningfully increase ash flow and geographic footprint for the company. Future disposal operations have already been permitted for continued expansion into 2019 and beyond.

Blue Sage exited three portfolio companies in 2018.

In May, Blue Sage closed on the sale of C&M Conveyor, Inc. to CapitalWorks, LLC, a Cleveland-based private equity firm. Based in Bloomington, Indiana, C&M Conveyor designs, engineers, manufactures and services turnkey automated material handling and conveying systems, serving as a value-added and critical partner to its industrial and commercial customers, particularly in the corrugated box industry.

In June, Blue Sage closed on the sale of Marine Accessories Corporation ("MAC") to Patrick Industries, Inc. Based in Maryville, Tennessee, MAC is a manufacturer, distributor and aftermarket supplier of custom tower and canvas products and other related accessories to OEMs, dealers, retailers and distributors, as well as direct to consumers within the marine market. Blue Sage made its initial investment in MAC in July 2015, and during its ownership, assisted MAC with multiple tuck-in acquisitions.

In November, Blue Sage closed on the sale of PRIMUS Sterilizer Company, LLC to the Chalmers Group of Companies, a privately-owned Canadian corporation headquartered in Mississauga, Ontario. Based in Omaha, Nebraska, PRIMUS is the leading independent manufacturer of steam sterilizers in the United States. The company's sterilizers can be found in premier research laboratories, hospitals and pharmaceutical companies throughout the world.

During the year, Blue Sage welcomed three new additions to the team.

Our firm's foundation and ability to grow is predicated on attracting and retaining the right people: people of intellect and integrity who bring a relational approach to a transaction business and who can embrace the goals of the team. During the year, we welcomed three new team members, David Berry, Blake Jones and Julia Montzingo.

David Berry joined Blue Sage in April 2018 as an Associate. Previously, he worked as an investment professional at ITE Management, a private equity fund based in New York City, focusing on industrial transportation assets. Prior to ITE, David was an Investment Banking Analyst at Morgan Stanley, specializing in transactions across the services industry. He advised on valuation and analysis of M&A, IPOs and leveraged buyouts. David graduated from Indiana University (News - Alert) with a Bachelor of Science from the Kelley School of Business in Finance and Entrepreneurship.

Blake Jones joined Blue Sage in August 2018 as an Associate. Previously, he worked as an Analyst in the Leveraged Finance Investment Banking group at Bank of America Merrill Lynch, where he structured and executed leveraged loans and high-yield bonds for financial sponsors and corporate clients across a variety of industries. Blake graduated with Highest Honors from the University of Texas with a Bachelor of Business Administration degree in Finance from the Business Honors Program and a minor in Accounting.

Julia Montzingo joined Blue Sage in September 2018 as Administrative Associate. Previously, she worked for TruCare Network in donor communications and marketing. Prior to that, Julia served as an Accounting Administrator at Hotze Runkle in Austin, Texas. She started Fort Worth Family Swim in 2005, which is a thriving business today. Julia graduated from Pepperdine University with a Bachelor of Arts in International Studies and an emphasis in Political Studies.

Blue Sage Capital announced two promotions in 2018.

Jonathan Kaskow was promoted to Vice President.

Austin Prentice was promoted to Senior Associate.

About Blue Sage Capital

Blue Sage Capital is an Austin, Texas-based private equity firm that has invested in profitable, growing, lower middle-market companies since 2002. Blue Sage has over $300 million of assets under management and partners with founders, families and management teams as the first round of institutional capital for businesses that enjoy leadership positions in niche manufacturing, environmental solutions or specialty services industries. Blue Sage typically invests $20 million to $40 million in control buyout investments and recapitalizations of companies with $20 million to $125 million of revenue.

This document is not an offer to sell or a solicitation of an offer to buy any securities and may not be used or relied upon in connection with any offer or sale of securities. The information, including any summaries, set forth herein does not purport to be complete and is subject to change.

This document may contain forward-looking statements and projections that are based on our current beliefs and assumptions and on information currently available that we believe to be reasonable; however, such statements necessarily involve risks, uncertainties and assumptions, and prospective investors may not put undue reliance on any of these statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190320005027/en/

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