ST. LOUIS — Core & Main, a specialized distributor of water, wastewater, storm drainage and fire protection products, and related services, announced Sept. 15 that it has entered into a definitive agreement to acquire substantially all of the assets of CES Industrial Piping Supply, a full service provider of HDPE (high-density polyethylene) products and services, based in Kansas City, Missouri.
“A full-service provider like CES Industrial Piping aligns with the dependable expertise we offer in fusible HDPE, which is a growth area for us. The team in Kansas City offers a one-stop shop for HDPE products, fabrication and installation, a complete package that gives customers confidence in adopting a new product,” said Steve LeClair, chief executive officer of Core & Main.
“We’re excited to expand our HDPE presence in the Kansas City area by bringing CES Industrial Piping Supply into the Core & Main family,” said Jack Schaller, president of Core & Main Waterworks. “They are a team to count on and the proof is in the quality of their field work and loyalty of their customers.”
Greg Smith, owner of CES Industrial Piping Supply, said, “I’m immensely proud of the success our team has achieved and all we have accomplished at CES Industrial Piping Supply. We are thrilled that the Core & Main team shares our commitment to providing a family-oriented culture with a focus on exceeding customer expectations. We are eager to work with the local Core & Main teams to enhance our product and service offering, and gain access to an even broader customer base and larger product portfolio.”
Founded in 1997, CES Industrial Piping Supply offers a full line of HDPE pipe, fittings and fusion machines. The team serves such markets as industrial, oil and gas, water, wastewater, wind energy, landfill, mining, environmental and power plants.
Based in St. Louis, Core & Main is a specialized distributor of water, wastewater, storm drainage and fire protection products, and related services, to municipalities, private water companies and professional contractors across municipal, non-residential and residential end markets nationwide. With more than 285 locations, the company provides its customers local expertise backed by a national supply chain. Core & Main’s 3,700 associates are committed to helping their communities thrive with safe and sustainable infrastructure.
Q2 Results
On Sept. 14, Core & Main announced unaudited financial results for the second fiscal quarter and six months ended August 1.
Fiscal 2021 Second Quarter Highlights (Compared with Fiscal 2020 Second Quarter)
- Net sales increased 35.7% to $1,297.6 million
- Gross profit margin increased 100 basis points to 25.1%
- Net income decreased 47.5% to $9.5 million
- Adjusted EBITDA (Non-GAAP) increased 56.8% to $155.2 million
- Adjusted EBITDA margin (Non-GAAP) increased 160 basis points to 12.0%
- Net Debt Leverage (Non-GAAP) (using Adjusted EBITDA on a trailing twelve-month basis) decreased to 3.3x as of August 1, 2021 compared with 5.2x as of May 2, 2021
- Closed two acquisitions subsequent to the quarter: L & M Bag & Supply Company, Inc. and Pacific Pipe Company, Inc.
“Core & Main delivered exceptionally strong performance in the second quarter, achieving record net sales with nearly 36% growth compared with the prior year, all while operating in a very dynamic environment,” said Steve LeClair, Chief Executive Officer of Core & Main.
