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Core & Main Completes Acquisition of Lee Supply Company Inc.

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Rhea-AI Summary
Core & Main Inc. (CNM) has completed the acquisition of Lee Supply Company Inc., a leading distributor and fabricator of HDPE pipe and related services, with locations in Pennsylvania, South Carolina, and West Virginia.
Positive
  • Acquisition of Lee Supply expands Core & Main's presence in the HDPE pipe market
  • Lee Supply's custom fabrication capabilities offer growth opportunities for Core & Main
Negative
  • No financial figures or percentages provided for the acquisition
  • No information on the potential impact of the acquisition on Core & Main's revenue or earnings

Insights

The acquisition of Lee Supply Company Inc. by Core & Main Inc. represents a strategic move to expand its distribution network and enhance its product and service offerings in the HDPE pipe market. HDPE pipes are widely used in various industries due to their durability, flexibility and resistance to corrosion, making them a preferred choice for infrastructure projects.

From a market perspective, this acquisition could lead to increased market share and revenue growth for Core & Main. The addition of Lee Supply's locations in Pennsylvania, South Carolina and West Virginia provides Core & Main with a broader geographical footprint, potentially improving its ability to serve customers in these regions. Furthermore, the integration of Lee Supply's specialty distribution and fabrication capabilities could enhance Core & Main's value proposition by offering a more comprehensive range of services, such as custom fabrication and equipment rentals.

The financial implications of this acquisition for Core & Main and its stakeholders can be significant. The immediate impact on Core & Main's balance sheet will depend on the acquisition cost and how it was financed, whether through debt, equity, or a combination of both. Investors should monitor the company's subsequent financial statements for changes in debt levels, interest expenses and any goodwill or intangible assets resulting from the acquisition.

In the long-term, the success of the acquisition will be measured by its contribution to earnings growth and return on investment. Synergies, cost savings and cross-selling opportunities are critical factors that could enhance profitability. However, the integration process poses risks, including potential culture clashes and disruptions in operations. It is crucial for Core & Main to manage these risks effectively to realize the full benefits of the acquisition.

The acquisition of Lee Supply by Core & Main may have a substantial impact on the supply chain dynamics within the HDPE pipe industry. By acquiring a specialty distributor and fabricator, Core & Main is likely aiming to strengthen its supply chain resilience and reduce dependency on external suppliers for certain services.

The ability to offer in-house fabrication and rental services for HDPE fusion equipment could streamline Core & Main's operations and improve its response time to customer needs. This vertical integration strategy can lead to cost efficiencies and better control over the quality and availability of products and services. However, managing an expanded supply chain comes with increased complexity and requires effective logistics and inventory management to avoid inefficiencies.

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 Lee Supply Company Inc. (Lee Supply). With four locations in Pennsylvania, South Carolina and West Virginia, Lee Supply is a leading specialty distributor and fabricator of high-density polyethylene (HDPE) pipe and other related services, including HDPE fusion equipment rentals and custom fabrication capabilities.

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 approximately 320 locations across the U.S., the company provides its customers local expertise backed by a national supply chain. Core & Main’s 4,500 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.

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 is the ticker symbol for Core & Main Inc.?

The ticker symbol for Core & Main Inc. is CNM.

What assets did Core & Main Inc. acquire from Lee Supply Company Inc.?

Core & Main Inc. acquired substantially all of the assets of Lee Supply Company Inc.

Where are the locations of Lee Supply Company Inc.?

Lee Supply Company Inc. has four locations in Pennsylvania, South Carolina, and West Virginia.

What does Lee Supply Company Inc. specialize in?

Lee Supply Company Inc. is a leading distributor and fabricator of HDPE pipe and related services, including HDPE fusion equipment rentals and custom fabrication capabilities.

How does the acquisition benefit Core & Main Inc.?

The acquisition of Lee Supply expands Core & Main's presence in the HDPE pipe market and offers growth opportunities through Lee Supply's custom fabrication capabilities.

Core & Main, Inc.

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Industrial Distribution
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