JACKSONVILLE, Fla., Oct. 29, 2010 (GLOBE NEWSWIRE) -- Interline Brands, Inc. (NYSE:IBI) ("Interline" or the "Company"), a leading distributor and direct marketer of maintenance, repair and operations ("MRO") products, announced today that it has acquired substantially all of the assets of CleanSource, Inc. ("CleanSource"), a distributor of janitorial and sanitation ("JanSan") supplies, for $60.1 million, comprised of $54.6 million in cash plus an earn-out of up to $5.5 million in cash over the next two years, subject to working capital and other closing adjustments. The transaction is expected to be neutral to Interline's fiscal 2010 results after acquisition-related expenses, but accretive to future earnings periods.
CleanSource, a leading regional JanSan distributor headquartered in San Jose, California, primarily serves institutional facilities in the healthcare and education markets, as well as building services contractors. For the twelve-month period ended September 30, 2010, CleanSource generated approximately $115 million of sales.
"The acquisition of CleanSource fits well with our strategy of acquiring well-run businesses with leadership positions in attractive facilities maintenance markets," said Michael J. Grebe, Interline's Chairman and Chief Executive Officer. "In addition to being accretive, we believe the acquisition offers numerous opportunities to grow sales and improve profitability. In particular, the acquisition enhances our position in the strategically important JanSan market as well as provides us with an opportunity to expand our national account capability to the West Coast. In addition, the transaction provides the potential for meaningful operating and sales benefits as we leverage our platform to generate cost synergies and sourcing benefits, as well as cross-sell more products to deliver a better value proposition to our customers. We have a very high regard for CleanSource's employees, their culture, and their valued relationships with customers and suppliers. They have a strong service-oriented approach, which is an excellent fit with Interline's culture."
The Company will discuss the CleanSource acquisition in more detail on its upcoming third quarter 2010 earnings call and webcast, scheduled for 9:00 AM Eastern Time on November 1, 2010.
Interline Brands, Inc. is a leading distributor and direct marketer with headquarters in Jacksonville, Florida. Interline provides maintenance, repair and operations products to a diversified customer base made up of facilities maintenance professionals, professional contractors, and specialty distributors primarily throughout North America, Central America and the Caribbean. For more information, visit the Company's website at .
CleanSource is a leading regional distributor of JanSan products and a market share leader in California. CleanSource provides product solutions and value-added services, including over 4,000 SKUs, to help businesses prosper while maintaining safe, healthy environments for their customers and employees. CleanSource was founded in 1956 and is based in San Jose, California, with approximately 250 full-time employees.
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The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, forward-looking statements. The Company has tried, whenever possible, to identify these forward-looking statements by using words such as "projects," "anticipates," "believes," "estimates," "expects," "plans," "intends," and similar expressions. Similarly, statements herein that describe the Company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. The risks and uncertainties involving forward-looking statements include, for example, economic slowdowns, general market conditions, credit market contractions, consumer spending and debt levels, adverse changes in trends in the home improvement and remodeling and home building markets, the failure to realize expected benefits from acquisitions, material facilities systems disruptions and shutdowns, the failure to locate, acquire and integrate acquisition candidates, commodity price risk, foreign currency exchange risk, interest rate risk, the dependence on key employees and other risks described in the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 25, 2010 and in the Company's Annual Report on Form 10-K for the fiscal year ended December 25, 2009. These statements reflect the Company's current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this release are likely to cause these statements to become outdated with the passage of time.
CONTACT: Interline Brands, Inc. Lev Cela 904-421-1441