Core & Main Completes Acquisition of Geothermal Supply Company Inc.

Rhea-AI Summary

Core & Main Inc. (NYSE: CNM) has completed the acquisition of Geothermal Supply Company Inc., a distributor of HDPE pipe and related products in Kentucky.

Positive

• Expansion of product offerings with the acquisition of GSC assets.

• GSC's strategic location in Horse Cave, Kentucky, enhances Core & Main's presence in the geothermal, water, and sewer industries.

• Potential for increased revenue and market share through the addition of GSC's customer base.

Negative

• Integration challenges may arise during the consolidation of GSC's operations into Core & Main.

• Risks associated with market fluctuations in the geothermal, water, and sewer industries may impact profitability.

• Increased competition in the HDPE pipe sector due to the acquisition.

Financial Analyst

The completion of Core & Main's acquisition of Geothermal Supply Company represents a strategic move to enhance its distribution in the HDPE pipe market, a segment that is important for various infrastructure projects. Financially, acquisitions often lead to increased revenue streams, potential cost synergies and a broader customer base. For Core & Main, this deal could mean leveraging GSC's established presence in the geothermal, water and sewer industries, which aligns with their growth objectives. Investors should monitor how this acquisition will affect Core & Main's market share and revenue growth in the following quarters. The integration process will also be key in realizing the full potential of the acquisition, as smooth assimilation can lead to the accrual of the projected benefits.

Market Research Analyst

HDPE pipe is gaining popularity due to its durability and application in essential infrastructure, including geothermal energy projects. By acquiring GSC, Core & Main is not only expanding its product offering but also potentially capturing a larger slice of the growing market for sustainable energy infrastructure solutions. It's important to note that the demand for HDPE pipes is expected to rise with the growth of the geothermal market, which is seen as a key component in the transition towards renewable energy. This move could place Core & Main in an advantageous position to meet the needs of an expanding customer base looking for reliable infrastructure solutions.

ST. LOUIS--(BUSINESS WIRE)-- Core & Main Inc. (NYSE: CNM), a leader in advancing reliable infrastructure with local service, nationwide, has closed its previously announced acquisition of substantially all of the assets of Geothermal Supply Company Inc. (GSC). GSC is a leading distributor and fabricator of high-density polyethylene (HDPE) pipe and other related products, primarily serving the geothermal, water and sewer industries from a single location in Horse Cave, Kentucky.

About Core & Main

Based in St. Louis, Core & Main is a leader in advancing reliable infrastructure™ with local service, nationwide®. As a leading specialized distributor with a focus on water, wastewater, storm drainage and fire protection products and related services, Core & Main provides solutions to municipalities, private water companies and professional contractors across municipal, non-residential and residential end markets, nationwide. With more than 350 locations across the U.S., the company provides its customers local expertise backed by a national supply chain. Core & Main’s nearly 5,500 associates are committed to helping their communities thrive with safe and reliable infrastructure. Visit coreandmain.com to learn more.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include information concerning Core & Main’s financial and operating outlook, as well as any other statement that does not directly relate to any historical or current fact. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “forecasts,” “expects,” “intends,” “plans,” “anticipates,” “projects,” “outlook,” “believes,” “estimates,” “predicts,” “potential,” “continue,” “preliminary,” or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to have been correct. These forward-looking statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.

Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240506715468/en/

Investor Relations:

Robyn Bradbury, 314-995-9116

InvestorRelations@CoreandMain.com

Media Relations:

Jennifer Noonan, 314-750-9670

Jennifer.Noonan@CoreandMain.com

Source: Core & Main, Inc.

FAQ

What company completed the acquisition of Geothermal Supply Company Inc.?

Core & Main Inc. (NYSE: CNM) completed the acquisition.

What type of products does Geothermal Supply Company Inc. distribute?

GSC distributes high-density polyethylene (HDPE) pipe and related products.

Where is Geothermal Supply Company Inc. located?

GSC is located in Horse Cave, Kentucky.