| Industrial Distribution Group, Inc. | |||
| Ticker: | IDG | 2500 Royal Place | |
| Exchange: | New York Stock Exchange | Tucker, GA 30084 | |
| Industry: | Wholesale (SIC Code 5085) | (770) 243-4042 | |
| Type of Shares: | Common Shares | Filing Date: | 7/18/97 | |
| U.S. Shares: | 3,300,000 | Offer Date: | 9/23/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $14.00 - $16.00 | |
| Primary Shares: | 3,300,000 | Offer Price: | $17.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.19 | |
| Offering Amount: | $49,500,000 | Selling: | $0.72 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Merrill Lynch & Co. | Lead Manager | (212) 449-4600 |
| Robinson-Humphrey Company, Inc., The | Co-manager | (404) 266-6450 |
| Issuer's Law Firm: | Kilpatrick Stockton LLP |
| Bank's Law Firm: | Skadden, Arps, Slate, Meagher & Flom |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | SunTrust Bank of Atlanta |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 3/31/97 | 3/31/97 | |||
| Revenue: | $251.06 | $66.68 | Assets: | $82.01 | |
| Net Income: | $3.58 | $1.42 | Curr Assets: | ||
| EPS: | Liabilities: | $50.19 | |||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $31.82 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company was formed in February 1997 to create a leading, nationwide supplier of cost-effective, flexible procurement solutions for manufacturers and other users of maintenance, repair, operating, and production products. The Company distributes a full line of industrial MROP products, emphasizing its specialized expertise in product applications. The Company's principal product categories include abrasives, cutting tools, hand and power tools, and coolants, lubricants, and adhesives. Utilizing its proprietary computerized Supply Management System, the Company's application and product specialists are able to analyze a customer's acquisition, possession, and application processes for MROP supplies and design programs to streamline the processes and reduce associated costs. Such programs may include improving a customer's production and procurement processes, standardizing MROP products, reducing the number of suppliers, or developing integrated supply arrangements that outsource to the Company some or all of a customer's MROP procurement and management functions. The Company intends to establish a nationwide presence, with ROP product and service capabilities in all or most of the major U.S. industrial markets. Currently, the Company has 41 operating locations in 37 cities, along with four small facilities abroad. The Company's more than 20,000 customers include a diverse group of major national and international corporations, including AlliedSignal, Black & Decker, Boeing, Chrysler, General Motors, Hoechst Celanese, PPG Industries, and Shell Oil. |
| Competition |
| The industrial MROP supplies industry is highly competitive and features numerous distribution channels, including: national, regional, and local distributors; direct mail suppliers; large warehouse chains; hardware stores; and manufacturers' own sales forces. Many of the Company's competitors are small enterprises who sell to customers in a limited geographic area, but the Company also competes against several large MROP distributors that have significantly greater resources than the Company. As customers increasingly seek low-cost alternatives to traditional methods of purchasing and sources of supply, they are, among other things, reducing the number of their MROP suppliers. Also, MROP distributors are consolidating to achieve economies of scale and increase efficiencies, which consolidation trend could cause the industry to become more competitive. In addition, new competitors may emerge. Certain of the Company's competitors sell identical products for prices lower than those offered by the Company. Moreover, the Company also competes on the basis of responsiveness to the needs of customers for quality service, product diversity, and availability. There can be no assurance that the Company will be able to compete successfully under such conditions. |
| Business Plan |
| The key elements of the company's strategy include: (I) Internal Growth, (ii) Acquisitions in Select Geographic Markets and (iii) Expansion into International Markets. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay indebtedness of the Founding Companies, to finance the acquisition of additional MROP distribution and related businesses, and for general corporate purposes. |
| Officer Name | Title | Age |
| Martin S. Pinson | Chairman of the Board and Chief Executive Officer | 51 |
| Douglass C. Smith | President and Chief Operating Officer and Director | 56 |
| Jack P. Healey | Vice President, Chief Financial Officer, and Secretary | 38 |