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Specialty DistributionIndustry Update

April 2014

Specialty Distribution Deal Spotlight

1

CONTENTSWHAT WE’RE READING

PUBLIC COMPARABLES

DISTRIBUTION TRENDS

M&A AND PUBLIC MARKET TRENDS

NOTABLE M&A ACTIVITY

ECONOMIC UPDATE

GROUP OVERVIEWHarris Williams & Co. is a leadingadvisor to the specialty distributionmarket. Our significant experiencecovers a broad range of endmarkets, industries, and businessmodels. This particular reportfocuses on trends and metrics in thefollowing areas:

• Specialty Catalog and Direct Marketing

• Branch-Based Distributors• Route-Based Distributors• Automotive and Heavy Duty

Aftermarket• Building and Construction

Products• Consumer & Food Service• Industrial, MRO, and Safety• Healthcare• Technology• Electrical and Communications• Alcohol, Tobacco, and Firearms

CONTACTSBob Baltimore | Managing Directorbbaltimore@harriswilliams.com+1 (804) 915-0129

Derek Lewis | Managing Directordlewis@harriswilliams.com+1 (804) 915-1118

Dave Kennedy | Director dkennedy@harriswilliams.com +1 (804) 915-0105

Marshall Croft | Vice Presidentmcroft@harriswilliams.com+1 (804) 915-0161

www.harriswilliams.com

Harris Williams & Co. Advises Gypsum Management and Supply, Inc.

Harris Williams & Co. recently announced the recapitalization of GypsumManagement and Supply, Inc. (“GMS”), the largest independent distributorof wallboard, acoustical and other specialty building products in the U.S., ledby AEA Investors LP (“AEA”).

Headquartered in Tucker, GA, GMS began operations in 1971 and is thelargest independent distributor of wallboard products in the U.S. Thecompany is also a leading distributor of acoustical products, steel studs andtrack, joint treatment, insulation and other building products for commercialand residential applications. In total, GMS operates in 30 states through morethan 140 branch locations.

has been recapitalized by

GMS’s broad, branch based distribution network and leading market position uniquely position it tocapitalize on the rebound in commercial and residential construction. Commercial construction continuesto pick up at a strong pace, vacancy rates continue to decline, and residential construction is at thebeginning stages of an anticipated extended rebound. Increasing construction volume enables betterpricing and fosters higher route density, which are critical components to driving higher margins forroute-based distributors.

GMS Footprint

Representative Subsidiaries

Industry Trend: U.S. Commercial Construction & Occupancy Increasing

0%

4%

8%

12%

16%

20%

0

500

1,000

1,500

2,000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014P 2016P

Commercial Construction Starts Vacancy Rates

17% CAGR Forecasted Rebound

For the Years Ended and Ending 1990 – 2016P (units in 000s of square feet)

Sources: McGraw Hill; REIS.

Com

mer

cial

Con

stru

ctio

n St

arts

Vacancy R

ates

Specialty Distribution Industry Readings

2

What We’re Reading

According to 2013 data released by the Brewers Association, craft brewers experienced an 18% growth in volume andrepresent 7.8% of the U.S. beer market volume, which is up from 6.5% just a year earlier. As well, small andindependent American brewers sold approximately 15.6 million barrels of beer in 2013, and craft beer has averagednearly 11% growth each year over the past decade. Further, 98% of the nearly 3,000 breweries operating in the U.S.in 2013 are identified as craft breweries.

Craig Purser, President and CEO of the National Beer Wholesalers Association, notes that, “Craft beer continues toprovide a significant contribution to the American beer industry and the overall American economy. The tremendousgrowth in craft beer sales underscores the excitement of independent beer distributors in partnering with America’scraft brewers to help them reach a wide network of retailers and increase their value.”

Please read the article here.

America’s Beer Distributors Applaud Craft Beer’s Record Growth

The success of high growth businesses depends more on distribution than product development, according to a recentpresentation given at the Small Business Summit by Bjoern Lasse Herrmann, Founder and CEO of data surveyor,Compass. Hermann discussed why focusing less on the product, and more on distributing the “big hits” to getofferings in front of potential customers, makes sense as an entrepreneur trying to grow a business.

Herrmann recommends: (i) focusing on mobile technology as the web is now accessed 27% more on mobile ratherthan desktop platforms; (ii) capitalizing on partnerships for distribution and promotion rather than trying to be found;(iii) cross-selling partner products to get noticed quickly by the partner which will lay the groundwork for moreaggressive distribution plans; (iv) scaling fast to build a larger platform by focusing on building a brand with adefensible and thoughtful target market; and (v) banding together by building not just a product, but also a distributionnetwork to the customer group which makes your organization more attractive.

Please read the article here.

The Best Product Does Not Win – The Best Distribution Does

Hospitals in the U.S. are turning to high-tech solutions to manage inventory of medications. Although there is noprecise research for drug diversion figures in the U.S., industry experts suggest that drug-inventory losses costhospitals millions of dollars per year. The most commonly diverted drugs are narcotic painkillers such ashydrocodone and morphine and sedatives. Prescriptions are often subject to being misplaced and many are oftenprone to theft.

In response to the inventory management problems faced by many hospitals, hospital administrators are turning totechnology solutions. In addition to password protected dispensing machines, radio frequency identification tags, androaming robots to deliver prescriptions securely to units, hospitals are increasingly adopting software that tracks everydose of medication to identify suspicious activity.

Discussing the recent efforts to integrate technology into the University of Maryland Medical Center, JonathanGottlieb, Chief Medical Officer says that the system is part of a drive to “redesign the whole medicationadministration workflow, minimize defects, maximize safety and reduce costs.”

Please read the article here.

Hospitals Address a Drug Problem

Specialty DistributionPublic Comparables & Trading Valuations

Key Trading Stats

3

($ in millions, except per share amounts)

As of April 4, 2014

Specialty Distribution Public ComparablesStock Performance Revenue

Current 1-Month 1-Year % of LTM Margins TEV/EBITDA GrowthTEV Price Change Change LTM High EBITDA Gross 2013 LTM 2014E 3-Yr. CAGR

Automotive & Heavy Duty Aftermarket

AutoZone, Inc. $21,644 $526.12 (2.8%) 32.5% 93.7% 21.9% 51.9% 10.5x 10.3x 6.7%O'Reilly Automotive Inc. 16,593 145.00 (3.2%) 40.7% 93.0% 19.4% 50.7% 12.9x 11.7x 7.2%Genuine Parts Company 13,872 86.30 (0.9%) 12.0% 95.9% 8.2% 30.1% 12.0x 10.5x 7.9%LKQ Corp. 9,456 27.48 (0.3%) 28.9% 80.1% 12.3% 41.0% 15.2x 11.6x 27.0%Dorman Products, Inc. 2,056 57.98 (2.9%) 58.5% 95.1% 20.8% 39.3% 14.9x 12.6x 14.9%Uni-Select Inc. 1,015 27.33 3.5% 41.1% 96.5% 4.6% 30.1% 12.4x 8.9x 11.6%

Median (1.9%) 36.6% 94.4% 15.8% 40.1% 12.6x 11.1x 9.8%Mean (1.1%) 35.6% 92.4% 14.5% 40.5% 13.0x 10.9x 12.6%

Building & Construction Products

CRH plc $25,753 $29.33 0.5% 39.4% 98.1% 6.0% 27.7% 18.2x 10.9x 1.6%Wolseley plc 16,992 58.61 1.1% 21.6% 98.1% 6.1% 27.9% 12.6x 9.7x (0.3%)Watsco Inc. 3,692 98.81 (1.7%) 20.3% 97.7% 7.7% 24.0% 12.8x 12.0x 9.6%Beacon Roofing Supply, Inc. 2,027 37.72 (4.2%) 2.5% 88.3% 6.9% 23.3% 12.9x 10.6x 11.4%Boise Cascade Company 1,268 27.55 (3.9%) (10.6%) 81.2% 4.2% 13.0% 9.2x 7.0x 13.5%Builders FirstSource, Inc. 1,152 8.91 2.4% 62.9% 94.8% 3.8% 21.5% 20.1x 11.5x 28.6%

Median (0.6%) 21.0% 96.2% 6.0% 23.7% 12.9x 10.8x 10.5%Mean (1.0%) 22.7% 93.0% 5.8% 22.9% 14.3x 10.3x 10.7%

Consumer & Food Service

Sysco Corporation $23,609 $35.65 (1.8%) 3.7% 82.1% 5.3% 17.4% 9.7x 13.6x 5.8%United Natural Foods, Inc. 3,679 68.89 (8.1%) 39.5% 86.5% 3.9% 16.8% 14.6x 12.9x 16.0%Spartan Stores Inc. 1,458 22.87 (0.6%) 31.1% 88.9% 3.8% 19.4% 12.1x 6.3x 8.2%Core-Mark Holding Company, Inc. 929 74.55 (3.2%) 44.6% 93.2% 1.3% 7.0% 9.4x 7.8x 11.9%

Median (2.5%) 35.3% 87.7% 3.8% 17.1% 10.9x 10.4x 10.0%Mean (3.4%) 29.7% 87.7% 3.6% 15.2% 11.5x 10.2x 10.4%

Industrial, MRO & Safety

W.W. Grainger, Inc. $17,672 $254.59 (1.1%) 14.7% 92.1% 15.8% 43.8% 11.9x 10.7x 9.5%Fastenal Company 15,077 51.00 5.0% 6.0% 96.0% 23.3% 51.7% 19.4x 17.4x 13.6%Airgas, Inc. 10,419 106.40 (1.6%) 10.9% 94.0% 18.5% 55.9% 11.1x 10.0x 7.0%MSC Industrial Direct Co. Inc. 5,694 87.24 (1.2%) 5.3% 97.3% 17.9% 45.7% 12.5x 11.7x 12.9%United Stationers Inc. 2,114 40.45 (7.5%) 7.5% 86.3% 5.1% 15.5% 8.1x 7.8x 1.7%Applied Industrial Technologies, Inc. 1,971 48.19 (6.7%) 12.2% 90.0% 8.1% 28.1% 10.0x 9.3x 5.8%DXP Enterprises, Inc. 1,635 99.75 (4.3%) 41.3% 85.3% 9.6% 30.0% 13.6x 9.2x 23.7%

Median (1.6%) 10.9% 92.1% 15.8% 43.8% 11.9x 10.0x 9.5%Mean (2.5%) 14.0% 91.6% 14.0% 38.7% 12.4x 10.9x 10.6%

Healthcare

McKesson Corporation $41,765 $170.87 (6.4%) 59.9% 90.9% 2.6% 6.0% 12.5x 9.4x 5.9%Cardinal Health, Inc. 24,856 69.01 (4.9%) 62.6% 92.8% 2.7% 5.3% 9.7x 9.6x (0.6%)Henry Schein, Inc. 10,749 116.48 (2.7%) 28.8% 96.3% 8.4% 27.8% 13.2x 12.7x 8.3%Patterson Companies, Inc. 4,811 42.47 1.1% 15.2% 95.7% 10.3% 30.7% 11.8x 10.6x 5.5%Owens & Minor Inc. 2,331 35.10 (0.1%) 10.2% 91.1% 2.7% 12.3% 9.4x 8.6x 3.7%MWI Veterinary Supply, Inc. 2,112 155.87 (6.9%) 18.7% 82.7% 4.7% 12.9% 18.1x 15.5x 21.9%

Median (3.8%) 23.7% 91.9% 3.7% 12.6% 12.2x 10.1x 5.7%Mean (3.3%) 32.6% 91.6% 5.2% 15.8% 12.5x 11.1x 7.4%

Consumer & Food Service

Building and Construction

Specialty DistributionPublic Comparables & Trading Valuations

Key Trading Stats

4

($ in millions, except per share amounts)

As of April 4, 2014

Stock Prices Trailing Twelve Months Stock Price PerformanceAs of April 4, 2014

Specialty Distribution Public Comparables

Industrial, MRO, & Safety

S&P 500

Electrical & Communications

Automotive & Heavy Duty Aftermarket

Technology

Healthcare

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%

Stock Performance RevenueCurrent 1-Month 1-Year % of LTM Margins TEV/EBITDA Growth

TEV Price Change Change LTM High EBITDA Gross 2013 LTM 2014E 3-Yr. CAGR

Technology

Arrow Electronics, Inc. $7,826 $59.64 7.1% 54.3% 97.5% 4.3% 13.1% 8.5x 7.7x 4.4%Avnet, Inc. 7,866 46.62 8.6% 39.2% 96.8% 3.7% 11.7% 8.0x 6.8x 5.2%Ingram Micro Inc. 4,637 29.24 (1.9%) 54.5% 96.4% 1.6% 5.9% 6.8x 6.0x 7.2%SYNNEX Corp. 3,609 76.94 26.1% 119.1% 96.9% 2.4% 6.2% 13.0x 8.2x 7.5%Tech Data Corp. 2,273 61.57 7.1% 36.9% 97.9% 0.9% 5.1% 9.6x 6.6x 3.8%ScanSource, Inc. 994 40.19 0.1% 49.0% 92.1% 4.0% 10.4% 8.6x 7.9x 6.2%

Median 7.1% 51.7% 96.8% 3.1% 8.3% 8.5x 7.3x 5.7%Mean 7.9% 58.9% 96.2% 2.8% 8.7% 9.1x 7.2x 5.7%

Electrical & Communications

Rexel SA $10,371 $26.17 0.7% 18.9% 92.9% 5.5% 24.6% 10.6x 7.7x 2.8%WESCO International Inc. 5,241 86.50 0.9% 22.7% 91.3% 6.7% 20.6% 10.4x 9.6x 14.1%Anixter International Inc. 4,004 99.06 (7.4%) 44.6% 85.5% 6.2% 22.8% 10.4x 9.8x 5.7%Houston Wire & Cable Company 277 12.52 (10.4%) (4.8%) 83.1% 7.2% 22.1% 10.0x 9.5x 7.5%

Median (3.4%) 20.8% 88.4% 6.4% 22.5% 10.4x 9.5x 6.6%Mean (4.1%) 20.3% 88.2% 6.4% 22.5% 10.4x 9.1x 7.5%

M&A and Public Market Trends

5(1) Mean figures for each industry category.Source: S&P Capital IQ.

TEV / EBITDA Multiples for Public Comparables1

Net Debt / EBITDA1 EBITDA Margins1

Distribution Trends

LTM EBITDA as of April 4, 2014

Top Challenges for Private Equity Funds

in 2014

• Only 15% of respondents to a recent BDO USA survey predict they will closemore than five deals in 2014, a drop from the 22% of managers who predictedin 2013 that they would close more than five deals

• Despite the cautious outlook, fund managers are eager to put capital to workand 36% of respondents expect to invest more than $100mm in deals in 2014

• In terms of exit activity, fund managers continue to see longer holding periods

Recent M&A and Private Equity Trends

What's Ahead for Private Equity Deal

Activity in 2014?

• Private equity fund managers believe that valuation will be their mostsignificant challenge in 2014

• When asked about the second most challenging area for private equity in 2014,fund managers say the identification of quality targets will be a challenge,pointing to ongoing concerns about deal flow in the wake of a slow 2013

14x 13x 13x 13x14x 14x 15x 14x12x 11x 11x 12x13x 12x 12x 12x13x 13x 13x 13x

8x 7x 8x 8x10x 10x 10x 10x

0x

5x

10x

15x

20x

Dec-13 Jan-14 Feb-14 Mar-14

TE

V /

EB

ITD

A

Automotive & Heavy Duty Aftermarket Building & Construction ProductsConsumer & Food Service Industrial, MRO & SafetyHealthcare TechnologyElectrical & Communications

1.9x

1.3x 1.1x

1.6x

0.6x

1.7x

2.8x

0x

1x

2x

3x

4x

Net

Deb

t / E

BIT

DA

14.5%

5.8%

3.2%

14.0%

5.2%

2.8%

6.4%

0%

5%

10%

15%

20%E

BIT

DA

Mar

gin

M&A Trends

Specialty DistributionNotable M&A Activity

Announced M&A

Transactions

6

Source: Capital IQ, Modern Distribution Management, Industrial Distribution, NAW, and TEDMagazine.

Date Private Equity

Announced Target Description Acquirer Involvement

4/2/2014 AccessClosure, Inc. Distributor of health supplies. Cardinal Health, Inc.

4/1/2014 Gypsum Management & Supply Distributor of building supplies. AEA Investors (Acquirer)

4/1/2014 Mgm Electric Limited Distributor of electrical equipment. Sonepar Canada, Inc.

4/2/2014 Lake Welding Supply Company Inc. Distributor of welding supplies. Praxair Inc.

3/31/2014 Glazier Foods Company Distributor of food. Gordon Food Service, Inc.

3/26/2014 PACK Pharmaceuticals, LLC Distributor of generic prescription products. Rising Pharmaceuticals, Inc.

3/21/2014 Pool Products Inc. Distributor of pool and spa equipment. Performance Pool and Spa, Inc.

3/21/2014 Certified Power, Inc. Distributor of hydraulic components. Brinkmere Capital Partners, LLC (Seller)

3/19/2014 TNG GP, U.S. Book Business Distributor of books. ReaderLink Distribution Services, LLC

3/16/2014 Jason Incorporated Distributor of finishing and seating products. Quinpario Acquisition Corp. (Seller)

3/14/2014 Bartyzel, Inc. Distributor of beer. Saratoga Eagle Sales & Services Inc.

3/13/2014 Alarming Devices, Inc. Distributor of component based wireless alarms. StationDigital, Inc. (Seller)

3/12/2014 Weldco Cen-Alta Welding Supplies Ltd. Distributor of welding equipment and supplies. Linde Canada Limited

3/11/2014 Protel Inc. Distributor of phone systems. Integra Telecom, Inc.

3/11/2014 United Welding Supplies, LLC and Best Welders Supply, Inc. Distributor of welding equipment and supplies. Praxair Inc.

3/10/2014 Value Lighting, Inc. and AL Enterprises, Inc. Distributor of lighting fixtures and ceiling fans. Revolution Lighting Technologies, Inc.

3/10/2014 Studer Fertilizer, Inc. Distributor of fertilizers and crop protection chemicals. Pinnacle Agriculture Holdings, LLC

3/10/2014 Advanced Industrial Products, Inc. Distributor of hydraulic components. Ohio Transmission Corporation

3/10/2014 Hartland Controls L.L.C. Distributor of definite purpose contactors. Incline Equity Partners (Acquirer)

3/10/2014 Hazmasters Environmental Controls Inc. Distributor of work environmental safety solutions. WESCO Distribution, Inc. (Seller)

3/7/2014 National Pump & Compressor And Canadian Pump and Compressor And GulfCo Industrial And LD Services

Distributor of pump equipment. United Rentals (North America), Inc.; United Rentals of Canada, Inc.

3/7/2014 Hightower Oil & Petroleum, Inc Distributor of lubricants and fuel for manufacturing. Mid-South Sales, Inc.

3/5/2014 Sport Truck USA, Inc. Distributor of aftermarket suspensions. Fox Factory Holding Corp

3/4/2014 J. K. Distributors, Inc. Distributor of automotive replacement parts. Uni-Select Inc.

3/4/2014 VPR Group, Inc. Distributor of E-Pen/E-Cigs for medical purposes. Discovery Minerals Ltd.

3/3/2014 Quebec Inc. Distributor of safety equipment. Linde Canada Limited

3/3/2014 Consumers Produce Co., Inc. (nka:Consumer Fresh Produce, Inc.)

Distributor of fresh food products. Coosemans Worldwide, Inc.

3/3/2014 Welding & Therapy Service, Inc. Distributor of medical gases and welding equipment. Airgas, Inc.

3/3/2014 Alternative Hose Inc., Assets and Operations of Bakersfield Location

Distributor of industrial hoses. Mccarty Equipment Co., Ltd.

3/1/2014 WynnCom, Inc. Distributor of telecommunication equipment. Fortran Corporation

3/1/2014 Energy Transfer Solutions, Inc. Distributor of HVAC equipment. DVL Group, Inc.

2/28/2014 Town and Country Medical, Inc. Distributor of durable medical equipment. Therapy Support, Inc.

2/28/2014 Nave Communications Company Distributor of networking and telecommunication equipment. ADDvantage Technologies Group Inc.

2/28/2014 Texas Rubber Supply, Inc. Distributor of industrial rubber products. Singer Equities, Inc. (Acquirer)

2/28/2014 Unified Industries, Inc. Distributor of material handling equipment. Columbus McKinnon Corporation

2/27/2014 B.W. Rogers Company, Inc., Certain Assets Distributor of hydraulic components. Kaman Industrial Technologies Corporation

2/26/2014 The Winner Distributing Company and F.P. Winner, Ltd. Distributor of beer. Mitchell Distributing Company, Inc.

2/26/2014 TelNet Corporation Distributor of communications solutions. Guest-tek Interactive Entertainment Ltd.

2/25/2014 Air-Care Home Health, Inc. Distributor of respiratory and mobility equipment. Aeroflow Inc.

2/21/2014 Ahrens Telecommunications Inc. Distributor of voice and data solutions. EarthBend LLC

2/14/2014 Dell Fastener Corporation Distributor of stainless steel and metric fasteners. AFC Industries, Inc.

50%

60%

70%

80%

90%

100%

20

30

40

50

60

70

Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14Inventories Backlog of Orders

25

30

35

40

45

50

55

60

65

70

75

25

30

35

40

45

50

55

60

65

70

75

32

38

44

50

56

62

Economic Update

PMI Index1

7

A Snapshot of Key

Economic Indicators

Durable Goods New Orders7

Industry Production Index3 U.S. Manufacturing Capacity Utilization4

Manufacturing Inventories & Backlog5,6

($ in billions)

(1) A PMI Index figure greater than 50 indicates expansion.

76.4%

52.5

57.5

As of April 2014

ISM New Orders Index2

(2) An ISM Index figure greater than 50 indicates expansion.

(5) A Manufacturing Inventory Index figure greater than 50 indicates expansion.(6) A Backlog Index figure greater than 50 indicates expansion.

(3) A Production Index figure greater than 50 indicates expansion.

(7) Durable Goods New Orders for February 2014. March release on April 24.

(4) Manufacturing Capacity Utilization for February 2014. March release on April 16.

55.1

$229.4

53.7

55.9

$100

$125

$150

$175

$200

$225

$250

Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needsof clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment toexcellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, privateplacements, and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS ANDCOPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTYINFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED ANISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTSDISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANYSTATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OROTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MOREINFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THEABOVE ADDRESSES OR NUMBERS.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not aresearch report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It isnot to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate inany particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but HarrisWilliams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliatesmay be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities ofcompanies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services forthose companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may holdlong or short positions in the securities, options thereon or other related financial products of companies discussed herein.Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice.The financial instruments discussed in this report may not be suitable for all investors, and investors must make their owninvestment decisions using their own independent advisors as they believe necessary and based upon their specific financialsituations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this materialmay be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Copyright© 2014 Harris Williams & Co., all rights reserved.

Specialty Distribution

Sources:

• Federal Reserve

• Industrial Distribution

• The Electrical Distributor Magazine

• The Wall Street Journal

• PitchBook

• PNC Economic Outlook

• S&P Capital IQ

• Thomson Financial – SDC Database

• United States Census Bureau

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