Leading North American market share in certain niche categories in an otherwise fragmented, competitive, and mature industry Relatively low EBITDA margins reflect limited pricing power and cost inefficiencies Although product diversity is improving, customer and geographic diversity remains limited Highly acquisitive growth strategy introduces significant execution and integration risks Weak credit metrics owing to a high debt burden from a series of debt-funded acquisitions Neutral to negative free cash flow, given relatively low margins and high growth capital expenditures Leverage to remain around 9x, as EBITDA growth from acquisitions will likely not offset the increase in borrowings to fund these acquisitions Adequate liquidity, given significant availability on the asset-based-loan (ABL) and no near-term maturities The negative outlook reflects S&P Global
