April 25 2008
Volume 38, Issue 8 - 04/25/2008
38
8
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Al Bates, founder and chairman of Profit Planning Group, Boulder, CO, wants to change how distribution executives think about their business. In this interview, he addresses dysfunctional behavior, alternatives to typical mindsets and ways that distributors can manage better in a turbulent economy. Based on his experience as a corporate financial planner and decades of data analysis, he’s not afraid to buck conventional wisdom. In fact, he enjoys it.
Bates has studied financial performance across dozens of wholesale distribution sectors for more than 25 years. His firm conducts the annual benchmarking report series, PAR reports, for more than 40 wholesale distribution associations. This interview discusses key themes from his new book, Profit Myths in Wholesale Distribution: …
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The bidding war for industrial distributor Industrial Distribution Group Inc., Atlanta, GA, continues, but WESCO Distribution Inc., Pittsburgh, PA, has bowed out. At press time (early April 25, 2008), Luther King Capital Management, Fort Worth, TX, had the highest bid with $12.10 per share in cash, or close to $134 million.
Luther King Capital current owns 15 percent of IDG’s stock. The firm presented IDG with an equity financing commitment letter from an LKCM investment fund.
Platinum Equity, the original victor with its offer of $10.30 per share for the distributor, had upped its bid to $11.80 per share in cash in response to WESCO Distribution’s bid of $11.75, or $130 million.
The back and forth comes after IDG agreed in February 2008 to be purchased …
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Why have three investors been raising the price for Industrial Distribution Group (IDG), the traditional whipping post of the investment community?
Last year, when IDG’s board pursued an exit strategy to free itself from the constraints of public ownership, the M&A market in distribution was still near its peak. In a year’s time, we have shifted dramatically from a financial frenzy to a quieter, more strategic buyer’s market. In today’s risk-averse debt markets, show me the money has taken on new meaning in the bidding war for IDG.
The three bidders active in this deal -Platinum Equity (owns Strategic Distribution), Luther King Capital Management (owns 15 percent of IDG stock), and WESCO (owns Bruckner Supply) -know the strengths and weaknesses in IDG. Based on …
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These 24 select product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. First quarter 2008 is compared with first quarter 2007, and fourth quarter 2007 with first quarter 2008. Download the full document below.
The product groups in this report:
