Core & Main to acquire Geothermal Supply Company assets

ST. LOUIS - Core & Main Inc. (NYSE: CNM), a distributor specializing in water, wastewater, and fire protection products, has announced a definitive agreement to purchase substantially all assets of Geothermal Supply Company Inc. (GSC), a Kentucky-based distributor and fabricator of high-density polyethylene (HDPE) pipe and related products.

The acquisition, terms of which were not disclosed, is expected to enhance Core & Main's position in the distribution of fusible HDPE products, which are used in geothermal, water, and sewer industries. GSC, established in 1996, is recognized for its offerings designed to support the installation and maintenance of geothermal systems.

Steve LeClair, chairman and CEO of Core & Main, expressed confidence in the partnership, citing the GSC team's industry knowledge and expertise as complementary to Core & Main's existing product offerings. He anticipates the acquisition will benefit both new and existing customers.

Jack Schaller, president of Core & Main, praised GSC's commitment to service and customer relationships, looking forward to integrating their expertise to bolster Core & Main's offerings.

Matt Lile, owner and operations manager of GSC, reflected on the company's journey since its inception, aiming to address gaps in the geothermal industry with quality HDPE products and services. He expressed pride in GSC's growth and is optimistic about the future as part of Core & Main.

Core & Main, headquartered in St. Louis, operates more than 350 locations across the United States, employing nearly 5,500 associates. The company is known for providing local expertise with a national supply chain, serving a variety of markets including municipal, non-residential, and residential.

This press release contains forward-looking statements, which are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such statements.

The information in this article is based on a press release statement.

In light of Core & Main Inc.'s (NYSE: CNM) recent announcement to acquire Geothermal Supply Company Inc., investors and industry watchers are keenly observing the company's financial health and market position. An examination of Core & Main's real-time data and InvestingPro Tips provides a more nuanced picture of the company's status.

InvestingPro data shows that Core & Main has a substantial market capitalization of 11.85 billion USD. The company's P/E ratio stands at 27.27, suggesting that investors are willing to pay a higher price for earnings, which could be reflective of the company's growth prospects or market sentiment. Moreover, the company's Price / Book ratio as of the last twelve months ending Q4 2024 is 8.16, indicating that the stock might be trading at a premium compared to its book value.

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Notably, Core & Main has demonstrated a strong return over the past year, with a 169.32% price total return, signaling robust investor confidence. This aligns with one of the InvestingPro Tips, which highlights the company's strong return over the last year. Moreover, the tip regarding the company's management aggressively buying back shares could be a sign of internal confidence in the company's value and future prospects.

It is also worth noting that Core & Main operates with a moderate level of debt and its liquid assets exceed short-term obligations, as per another InvestingPro Tip. This suggests a stable financial footing, which could be advantageous as the company integrates the newly acquired assets from GSC.

For investors seeking more detailed analysis and additional InvestingPro Tips for Core & Main, a visit to https://www.investing.com/pro/CNM reveals that there are 15 tips available. These tips can provide deeper insights into the company's performance and potential investment opportunities. Using the coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering even more value to those seeking to make informed investment decisions.

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