Fastener group to go public in March
By Staff -- Industrial Distribution, 3/1/1998
Houston, Tex.--When Industrial Distribution Group formed by merging nine independent distributors and went public last September, many industry experts predicted it was the start of a trend within the fragmented distribution sector. Indeed, just five months later, five fastener distributors have announced their decision to merge and sell shares to the public. The combined company had total sales of $141.1 million for its fiscal year ended Sept., 1997.The new group, to be called Pentacon, Inc., consists of Capitol Bolt & Supply, Inc. of Austin, Tex.; Sales Systems, Ltd., Allentown, Pa.; Alatec Products, Inc., of Chatsworth, Calif.; AXS Solutions, Inc., a Division of Hoyt, based in Erie, Pa.; and Maumee Industries, Inc., of Fort Wayne, Ind.
The new firm will be based in Houston, Tex., and headed up by chief executive officer Mark Baldwin, formerly of Keystone International, where he was president of the Industrial Valves and Controls Group.
According to the company's prospectus, 5.2 million shares will be offered sometime in March. The stock offering is expected to be priced between $8 and $10 per share, raising approximately $50 million-plus for the firm. The money raised from the offering is expected to fund an aggressive acquisition program. The stock will trade on the New York Stock Exchange under the symbol "JIT."
Of the founding members, Alatec is the largest, with annual sales of $53.7 million. Maumee ($34.5 million), AXS ($30.5 million), Sales Systems Ltd ($15.7 million), and Capitol ($11.5 million) round out the group. Net income among the companies was $5.4 million, adjusted for merger expenses.
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