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Residential Services Group, Inc., headquartered in Dayton, Ohio, is one of the nation’s largest providers of heating, ventilation, air-conditioning and refrigeration (HVAC) and plumbing services to the residential and light commercial markets. RSG installs HVAC and plumbing systems in new homes as a subcontractor to homebuilders, and provides maintenance and replacement services to individual homeowners. The Company operates through 27 locations across 9 states. The Company is one of the largest contractors in the highly fragmented HVAC and plumbing industries and has long-standing relationships with large regional and national homebuilders. RSG is typically one the leading providers in a market that can meet the high volume production of large homebuilders. RSG relies on its strengths in system design, logistics/planning, and customer service to provide a competitively priced and highly reliable system that differentiates itself from competition.

RSG was acquired in early 2003 in partnership with the management of RSG. At that time, the Company was a division of Encompass Services Corp., a company in bankruptcy. Despite the bankruptcy, the RSG division was able to maintain long-standing customer relationships in the local markets and continue its strong financial performance. Wellspring guided management through the acquisition and complicated bankruptcy process caused by its struggling parent company.

From the beginning, Wellspring worked with management to capitalize on many of the opportunities in the residential market. Wellspring established a strong capital base with significant equity support that gave RSG the flexibility to actively pursue growth opportunities and to respond quickly to changes in the market. The Company grew with its customer base of leading regional and national homebuilders as the builders continued to gain market share. Wellspring also helped RSG expand geographically and supported the Company in the growth of its service

business, as the Company leveraged its large installed base of equipment to increase its service and replacement revenue. As a result of the continuing growth in the core business and steps taken to expand the Company’s footprint, Wellspring sold RSG to Centrica plc, a U.K.-based energy concern, in October 2004.

"We found a great partner in Wellspring. They brought speed and resourcefulness to help us emerge quickly from a complicated bankruptcy process involving our parent company. They brought a fresh perspective to our business and creative input in strategic decisions. Although we have concluded our relationship with Wellspring, we greatly appreciate the support they provided to our management team and the long-term value they added to the RSG franchise."

Eric E. Salzer
Chief Executive Officer