Core & Main Signs Agreement to Acquire Eastern Supply
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Insights
The acquisition of Eastern Supply by Core & Main Inc. presents a strategic expansion within the infrastructure sector, specifically in water, wastewater and stormwater management. This move could potentially increase Core & Main's market share and enhance their product and service offerings. The integration of Eastern Supply's custom fabrication capabilities and their established customer base in the Northeast expands Core & Main's geographical footprint and could provide cross-selling opportunities. It is crucial to monitor how this acquisition will affect Core & Main's operational efficiency and whether the anticipated synergies will materialize in the form of increased profitability.
From a financial standpoint, the acquisition's impact on Core & Main's balance sheet and cash flow statements will be an area of focus for investors and analysts. The terms of the deal, including the acquisition price and the funding method, are key factors in assessing its financial wisdom. If funded through debt, one must consider the implications for Core & Main's leverage ratios and interest coverage. Additionally, the accretion to earnings per share and potential cost savings through operational efficiencies are important metrics that could influence investor sentiment and the company's stock price.
The definitive agreement to acquire substantially all assets of Eastern Supply necessitates a thorough due diligence process, ensuring compliance with all regulatory requirements. The legal implications of such an acquisition include the transfer of contracts, potential antitrust considerations and the harmonization of corporate policies and procedures. It is also essential to assess any potential risks related to intellectual property and employment law. The successful navigation of these legal aspects is critical for a smooth transition and integration of Eastern Supply into Core & Main's business operations.
“The extensive product knowledge and fabrication capabilities in water, wastewater and stormwater management that the Eastern Supply team brings to Core & Main will be a great contribution to our national waterworks expertise,” said Steve LeClair, chief executive officer of Core & Main.
For close to three decades, the Eastern Supply team has supplied a broad range of drainage products to contractors, engineers and municipalities across the Northeast. The company has a location in
“The Eastern Supply team has built enduring customer relationships through their commitment to supplying quality products backed by dependable service and industry expertise. I’m excited to welcome them to the Core & Main family and to see what we will accomplish together,” said Jack Schaller, president of Core & Main.
“Eastern Supply has worked very hard over the years to build our reputation as an innovator and supplier-of-choice in this industry, and we are proud of the relationships we have built with our customers and suppliers,” said Tim Martin, owner/president of Eastern Supply. “It is clear we share a fundamental set of values with Core & Main. Their focus on growth, collaborative associate development and customer satisfaction creates a lot of excitement for our team and the company.”
About Core & Main
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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/20240109905957/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.
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