Distribution International

Consolidated the Highly Fragmented Insulation Distribution Industry via a Buy and Build Strategy

Company Overview

Capstreet originally invested in Thorpe Holdings (“Thorpe”), which consisted of an insulation distribution business and a refractory services business. We successfully spun out the refractory business from the insulation distribution business to maximize operating efficiency, and then merged Thorpe’s insulation distribution business with major competitor, Distribution International. The result was the company became a distributor of  insulation, related specialty fabricated products, and accessory supplies in North America.

Path to Value Creation

  • Recruited CEO, VP Operations, HR Director and Controller
  • Recruited outside directors
  • Completed merger with major U.S. competitor
  • Completed two major Canadian acquisitions
  • Completed seven additional acquisitions under Capstreet ownership
  • Scale created significant buying power
  • Improved sourcing and implemented strategic pricing, driving significant margin expansion