up 15% today,
Morgan Products (NYSE:MGN) to buy Adam Wholesalers
Reuters, Tuesday, December 29, 1998 at 15:08
WILLIAMSBURG, Va., Dec 29 (Reuters) - Specialty building
products distributor Morgan Products Ltd. said Tuesday it
agreed to acquire Adam Wholesalers Inc., a privately held
distributor of windows, doors and other millwork products.
Morgan did not disclose the terms of the acquisition, and
company officials were not immediately available to comment.
The acquisition will be primarily for cash financed through
bank debt, the company said, though the deal remains subject to
a financing condition.
Cincinnati-based Adam Wholesalers has annual sales of $345
million, Morgan said, adding that the acquisition would double
its revenue and make it one of the largest wholesale
distributors of millwork building products in the United
States, with annual sales in excess of $700 million.
Morgan expects the acquisition to "ultimately" improve
profits and increase return on assets by eliminating excess
capacity and redundant costs.
The companies expect to complete the deal by Jan. 31, 1999.
Morgan's shares rose 1/2, to 3-1/16, in trade on the New
York Stock Exchange |
