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Core & Main Completes Acquisition of Eastern Supply

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Core & Main Inc. (CNM) has completed the acquisition of Eastern Supply Inc., expanding its reach in storm drainage products with custom fabrication capabilities.
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The acquisition of Eastern Supply by Core & Main Inc. represents a strategic expansion that could potentially enhance Core & Main's market presence in the storm drainage products sector. From a market research perspective, the addition of two new locations in Virginia and Pennsylvania suggests an increase in the company's distribution footprint, which could translate into improved market penetration and customer reach. Analyzing industry trends, there's a growing emphasis on infrastructure development and maintenance, which may boost demand for storm drainage products due to increased urbanization and the need for effective water management systems.

It is important to assess how this acquisition aligns with Core & Main's existing product portfolio and distribution strategy. If Eastern Supply's offerings are complementary, the acquisition could lead to a more diversified product line and cross-selling opportunities. However, the integration process will be crucial to realize synergies and avoid potential disruptions. Stakeholders should monitor the post-acquisition integration closely to evaluate the effectiveness of the strategy and its impact on Core & Main's operational efficiency and profitability.

From a financial standpoint, the acquisition of Eastern Supply by Core & Main Inc. could have significant implications for the company's financials. The acquisition's immediate financial impact will depend on the terms of the deal, which are not disclosed here. However, the long-term success will be measured by the acquired assets' contribution to revenue growth and margin improvement. Investors should look for indicators such as revenue synergies, cost savings from economies of scale and the effect on Core & Main's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margins.

It is also vital to consider the funding of the acquisition and its impact on the company's balance sheet. If the purchase was made using a significant amount of debt, it could affect Core & Main's leverage ratios and interest coverage, potentially influencing the company's credit rating and stock performance. Investors should evaluate the acquisition's financing and how it aligns with the company's capital allocation strategy and risk profile.

In acquisitions such as Core & Main's purchase of Eastern Supply, legal due diligence is a critical component that can have far-reaching implications. It's essential to ensure compliance with antitrust laws and regulations, especially since Core & Main is expanding its market share in the storm drainage products market. The legal examination of Eastern Supply's contracts, liabilities and intellectual property rights would be necessary to mitigate any potential legal risks associated with the acquisition.

Furthermore, the legal framework governing the transfer of assets, potential environmental liabilities associated with the product offerings and employment law considerations during the integration of Eastern Supply's workforce must be carefully navigated to avoid future litigation or regulatory penalties. Stakeholders should be aware of any legal contingencies that could affect the expected benefits of the acquisition.

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 Eastern Supply Inc. and a related entity (collectively, “Eastern Supply”). With two locations, one in Winchester, Virginia, and one in Greencastle, Pennsylvania, Eastern Supply is a distributor of a broad range of storm drainage products, with 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.

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

Core & Main Inc. acquired substantially all of the assets of Eastern Supply Inc., a distributor of storm drainage products.

Eastern Supply Inc. has locations in Winchester, Virginia, and Greencastle, Pennsylvania.

Eastern Supply Inc. distributes a broad range of storm drainage products.

Eastern Supply Inc. has custom fabrication capabilities.
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About CNM

core & main distributes a complete line of water, sewer, fire protection and storm drain products to serve the needs of both contractors and municipalities in all aspects of public works and private construction industries. these products are integral to building, repairing and maintaining water systems and serve as part of the basic municipal infrastructure required to support population and economic growth, and residential and commercial construction.