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ST. LOUIS - Core & Main Inc. (NYSE: CNM), a specialized distributor of water, wastewater, storm drainage, and fire protection products, announced today that it has signed a definitive agreement to acquire substantially all of the assets of GroGreen Solutions Georgia, LLC, a provider of erosion control products in the southeastern United States.
The acquisition will include GroGreen's four locations, two in Georgia, one in Florida, and one in Mississippi, expanding Core & Main's presence and distribution capabilities in the Southeast. GroGreen has been known since 2008 for its comprehensive portfolio of erosion control and geotextile products for professional and industrial projects.
Steve LeClair, chair and CEO of Core & Main, emphasized that GroGreen's extensive industry expertise and product offerings will significantly complement Core & Main's existing geosynthetics product portfolio. Brad Cowles, president of Core & Main, also noted that GroGreen's commitment to superior service and quality products aligns with their strategic goals.
Greg Jarrell, CEO of GroGreen, expressed enthusiasm for the new opportunities that the acquisition will offer his team, highlighting the shared commitment to providing reliable products and support to customers' projects.
Core & Main, headquartered in St. Louis, operates more than 350 locations across the U.S. and employs nearly 5,500 associates. The company focuses on providing local expertise backed by a national supply chain, serving municipalities, private water companies, and professional contractors.
This press release contains forward-looking statements, which involve risks, uncertainties, and other factors that may cause actual results to differ materially from the expectations expressed. Interested parties are directed to Core & Main's filings with the Securities and Exchange Commission for further information on these risks and uncertainties.
The acquisition is part of Core & Main's ongoing efforts to expand its service offerings and reach within the infrastructure sector. The transaction is based on a press release statement and further details on the terms of the agreement have not been disclosed.
In other recent news, Core & Main has made significant strides in its business operations. The company has expanded into the Canadian market through the acquisition of HM Pipe Products, Inc. and its affiliate, a move that leverages the local market expertise of the Canadian firm. Core & Main also reported a strong first-quarter performance with net sales increasing by 11% to a record $1.74 billion, leading to an upward revision in its annual outlook for net sales and adjusted EBITDA.
Simultaneously, Core & Main has announced a share repurchase program authorizing a buyback of up to $500 million of its Class A common stock. This decision reflects the company's confidence in its financial strength and commitment to delivering shareholder value.
In terms of analyst coverage, Truist Securities revised its price target for Core & Main from $56.00 to $50.00, maintaining a Hold rating on the company's shares. Conversely, RBC Capital Markets maintained its Outperform rating on shares of Core & Main, with a consistent price target of $60.00.
In other company developments, Core & Main shareholders recently voted on several key proposals, including the election of directors and the approval of executive compensation. The appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending February 2, 2025, was also ratified with a substantial majority. These are among the recent developments for Core & Main.
InvestingPro Insights
As Core & Main Inc. (NYSE: CNM) announces its acquisition of GroGreen Solutions Georgia, LLC, the company's financial health and market performance provide valuable context for investors. According to InvestingPro data, Core & Main currently holds a market capitalization of approximately $9.88 billion. The company's Price-to-Earnings (P/E) ratio stands at 23.02, reflecting investor expectations for future earnings. Notably, the P/E ratio has adjusted slightly upwards to 24.73 over the last twelve months as of Q1 2025.
InvestingPro Tips suggest that Core & Main's management is actively engaging in share buybacks, which could signal confidence in the company's value and prospects. Additionally, the company has been profitable over the last twelve months and analysts predict it will remain profitable this year. This aligns with Core & Main's strategic goals and expansion efforts, as demonstrated by the recent acquisition.
Despite some analysts revising their earnings downwards for the upcoming period, Core & Main's revenue growth remains positive, with a 3.65% increase over the last twelve months as of Q1 2025. The company's commitment to expanding its service offerings and reach within the infrastructure sector is also reflected in its strong return over the last year, with a price total return of 54.31%.
For investors interested in further insights and metrics, there are additional InvestingPro Tips available at https://www.investing.com/pro/CNM, providing a more comprehensive analysis of Core & Main's financial performance and market position.
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