Top-tier positions in the U.S. and Canadian electrical distribution markets; End-market and customer diversity across construction, industrial, institutional and governmental, and utility infrastructure markets; Highly competitive and fragmented industry, with exposure to economic, industrial, and construction cycles; Low fixed-capital intensity but significant working capital needs; Stable EBITDA margins at about 7%-8%; and Acquisition strategy adds some integration risk. A publicly stated policy to restrict leverage to 3.5x reported debt to EBITDA, which equates to approximately 4.0x adjusted debt; Debt-funded acquisition strategy, resulting in leverage that may temporarily exceed target levels; Consistent free operating cash flow that supports external growth objectives and debt reduction; and Stability in operating performance supported by slowly improving end market conditions and judicious cost controls. The
