Mexico denies Sherwin-Williams over Consorcio Comex, again
Mexican regulators turned down Sherwin-Williams in its appeal over the purchase of paint company Consorcio Comex, which it had purchased in September but failed to secure the necessary regulatory approval from the Federal Competition Commission of Mexico.
The FCC had reportedly turned down the deal in a 3-2 vote in July, but the company had gone ahead with its announcement in September. Sherwin-Williams was informed Tuesday night of the FCC’s decision to deny its appeal.
At the moment, Sherwin-Williams is considering its options, which include filing for approval again.
The deal involved $90 million in cash as well as the assumption of Comex’s liabilities, valued at $75 million.
Stock points to positives in Q3
Fresh after completing its initial public offering on Aug. 14, Raleigh, N.C.-based Stock Building Supply posted mixed results for the third quarter. The pro dealer reported a net loss of $5.5 million in the third quarter ended Sept. 30. However, sales were up 28.4% to $328.5 million, compared with $255.8 million in the same period last year.
Now traded on the Nasdaq market under the ticker symbol STCK, Stock’s IPO yielded approximately $46.8 million of proceeds that were used to repay borrowings under the company’s revolver.
The company’s net loss included $9.3 million of IPO transaction-related costs, compared with net income of $0.04 million in the prior-year period. In the third quarter of 2012, stock earned $40,000.
For the nine months, Stock’s net income loss narrowed to $7.59 million, compared with a net loss of $10.76 million in the same nine-month period of 2012.
"In the third quarter, our business performance continued its positive trend of strong revenue growth and increases in adjusted EBITDA,” said CEO Jeff Rea in a prepared statement. “Additionally we completed our transition to a public company with a successful IPO on Aug. 14, which helped improve our liquidity and strengthen our balance sheet. We believe our growth rate continues to outperform our industry benchmarks as revenues from new single-family construction increased approximately 31%, while repair and remodel revenues increased 28% compared with third quarter 2012."
The company reported a significant reduction in debt — from $116.6 million at the beginning of the quarter to $57.2 million as of Sept. 30. “We believe our current capital structure will allow us to make the required investments in our business to support our anticipated future growth," said Jim Major, executive VP and CFO.
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WOLF promotes Ed O’Brien
York, Pa.-based WOLF announced the promotion of Ed O’Brien to the post of VP operations.
WOLF describes itself as the largest supplier of kitchen and bath cabinets in the United States and a leading provider of building products along the East Coast. The company says the move, along with the promotion of Mike Sessinger, will help it achieve an expanded service area and help evolve its strategic focus.
Both Sessinger and O’Brien will report to WOLF president Brad Kostelich.