O’Melveny Advises PMC Capital on Sale of StyroChem Canada Ltd.

FOR IMMEDIATE RELEASE

CENTURY CITY—October 4, 2021—An O’Melveny team advised PMC Capital Partners, LLC ("PMC Capital") on the sale of StyroChem Canada, Ltd. ("StyroChem") to Epsylite Holdings, LLC ("Epsylite"), a portfolio company of Balmoral Funds, LLC ("Balmoral"). Financial terms of the transaction were not disclosed.

StyroChem was founded in 1975 and was one of the first manufacturers of expanded polystyerene (EPS). Styrochem continues to supply high quality EPS products for customers across the globe from its base in Quebec, Canada. PMC Capital acquired the business back in August 2019.

The O’Melveny team guiding PMC Capital on this transaction was led by Corporate partner David Smith and counsel Melissa Wright.

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PMC Capital issued the following press release:

PMC Capital Sells StyroChem Canada, Ltd. to Epsylite Holdings, LLC

Oct 04, 2021, 09:00 ET

LOS ANGELES, Oct. 4, 2021 /PRNewswire/ -- PMC Capital Partners, LLC ("PMC Capital"), is pleased to announce that StyroChem Canada, Ltd. ("StyroChem") has been sold to Epsylite Holdings, LLC ("Epsylite"), a portfolio company of Balmoral Funds, LLC ("Balmoral"). Financial terms of the transaction were not disclosed.

StyroChem was founded in 1975 and was one of the first manufacturers of expanded polystyerene (EPS). Styrochem continues to supply high quality EPS products for customers across the globe from its base in Quebec, Canada. PMC Capital acquired the business back in August 2019.

As PMC Capital's connection with StyroChem comes to a conclusion, Michel Tamer, Managing Partner of PMC Capital said, "We are proud to have supported StyroChem's management team's vision for growth over the last few years and are pleased to have been part of creating an extensive line of EPS solutions to the food service, packaging, construction, casting and specialty applications with StyroChem. As we exit the investment, we wish the StyroChem team continued growth and success."

"StyroChem has made its reputation by offering unique solutions in all segments of the EPS industry with a heavy focus on customer satisfaction. We have always viewed Epsylite as one of the key innovators and producers in the EPS industry so we are excited by what the future holds. I would like to thank the PMC, Balmoral, StyroChem and Epsilyte teams for their hard work and professionalism during this process." Said Glenn Wredenhagen, CEO of StyroChem.

"We would like to thank our internal team and all of the stakeholders involved, whose hard work and dedication were integral to completing this transaction. We look forward to working with the Epsylite and Balmoral teams" Said Gaetan D'Agostino, CFO of StyroChem

About PMC Capital Partners, LLC

Established in 2019, PMC Capital is on the path of becoming one of the fastest-growing private equity firms that invests in strategic opportunities where thought, operational resources, and flexible capital can empower management teams to execute their business plans. PMC Capital currently owns and operates a portfolio of high-quality national and international businesses in the lower middle-market space, employing nearly 1,000 employees, with approximately $450M in combined annual revenues. With over 100 years of collective private equity experience, PMC Capital brings a successful track record of executing corporate carve-outs, recapitalizing balance sheets, acquiring founder-owned companies and completing bolt-ons. With a committed pool of capital backed by a family office, PMC Capital targets control equity investment opportunities in the business services, industrials, TMT, consumer and health care sectors. The nature of PMC Capital's platform allows for a longer-term time horizon and a business-friendly approach to ownership transitions, divestitures and successions.

The firm is headquartered in Los Angeles, California. For more information, please visit www.pmccapital.com

About Epsylite, Holdings, LLC

Epsilyte is one of North America's leading producers of expandable polystyrene resin. We are a company of scale focused on solving customer needs for efficient, high-R value EPS. This includes reducing energy usage in buildings, ensuring safe and healthy food through innovative packaging technology, and participating in infrastructure investment both in the United States and abroad. Epsilyte is a portfolio company of Balmoral Funds LLC. For more information please visit www.epsilyte.com.

About Balmoral Funds, LLC

Balmoral is a Los Angeles, CA based private equity fund that was founded in 2005. Balmoral currently has more than $450 million of assets under management and focuses on partnering with talented and committed management teams to invest in and revitalize companies. Balmoral typically invests in companies that have revenues between $30 to $500 million and require equity investments of $10 to $60 million. For more information, please visit www.balmoralfunds.com.