| MPW Industrial Services Group, Inc. | |||
| Ticker: | MPWG | 9711 Lancaster Road, S.E. | |
| Exchange: | NASDAQ-National Market | Hebron, OH 43025 | |
| Industry: | Service (SIC Code 7349) | (614) 927-8790 | |
| # of Employees: | 1300 | ||
| Type of Shares: | Common Shares | Filing Date: | 10/1/97 | |
| U.S. Shares: | 3,750,000 | Offer Date: | 12/1/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $9.00 - $11.00 | |
| Primary Shares: | 3,750,000 | Offer Price: | $9.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.63 | |
| Offering Amount: | $37,500,000 | Selling: | $0.37 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | 9,950,000 |
| Manager | Tier | Phone |
| Raymond James & Associates, Inc. | Lead Manager | (813) 573-8108 |
| Robert W. Baird & Company | Co-manager | (414) 765-3632 |
| Issuer's Law Firm: | Jones, Day, Reavis & Pogue |
| Bank's Law Firm: | McDermott, Will & Emery |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | National City Bank |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 6/30/97 | 6/30/97 | ||||
| Revenue: | $72.91 | Assets: | $45.52 | ||
| Net Income: | $2.16 | Curr Assets: | $18.97 | ||
| EPS: | $0.40 | Liabilities: | $28.81 | ||
| Prior EPS: | Curr Liabilities: | $11.90 | |||
| Cash Flow/Oper: | $5.00 | Equity: | $16.71 | ||
| Cash Flow/Fin: | $0.77 | Cash: | $0.51 | ||
| Cash Flow/Inv: | -$5.78 | Working Cap: | $7.07 | ||
| Business Description |
| The company is a leading provider of technology-based industrial services, including industrial cleaning and facility support services, industrial air filtration services, industrial container cleaning, industrial process and water purification. In fiscal 1997, the Company provided services to more than 500 customers, located primarily in the Midwestern and Southeastern United States. The Company serves customers in a broad range of industries including automotive, electric power, chemical, pulp and paper, steel, transportation, aerospace and other heavy manufacturing. The Company's services typically are performed within large industrial facilities and require the use of Company-owned equipment and specially trained personnel. The Company believes that its services are generally recurring in nature and are essential to manufacturing efficiency and safety at its customers' facilities. The Company has over 25 years of experience and currently has more than 1,300 employees, a network of 31 offices and over 1,000 pieces of operating equipment. |
| Competition |
| The market for industrial services is fragmented. There are many competitors, no one of which MPW believes holds a substantial market share. The Company competes with a number of companies in substantiallyall of the regions in which it operates. Most of these competitors are local operations with limited service offerings; however, there are a few large national and regional competitors. In recent years there has been a greater concentration of resources in the industrial cleaning industry. In October 1996, ServiceMaster L.P. acquired Premier Manufacturing Support Services, Inc., one of the leading providers of outsourcing services to the automotive industry. In July 1997, Philip Services Corp. (formerly Philip Environmental, Inc.) acquired Allwaste, Inc. and Serv-Tech, Inc., both competitors of the Company. Some of the larger industrial services companies have significantly greater financial and other resources than the Company. The Company believes that the principal competitive factors in the industrial services industry are experience, capability and price competitiveness. The Company's principal competitive advantages are the quality of the equipment that it uses, its ability to respond quickly to customer needs and its reputation for competent and professional personnel. MPW positions itself competitively as a value leader and not a price leader, though it remains necessary for MPW to price its services at levels where its customers will achieve cost savings versus performing the same services themselves. |
| Business Plan |
| The Company's primary long-term objective is to be the premier provider of technology-based industrial cleaning, facility support and related services to industrial customers. The Company's principal competitive advantages are the quality of the equipment that it uses, its ability to respond quickly to customer needs and its reputation for competent and professional personnel. The company intends to maintain its primary focus on providing industrial cleaning and related services while continuing to offer complementary services as a means to expand existing relationships and attract new opportunities. The principal elements of the Company's competitive and growth strategies are the following: (I) Industrial Market Focus, (ii) Ongoing Customer Relationships, (iii) Quality Workforce, (iv) Technology-Based Services and (v) Responsiveness to Customers. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay the outstanding principal amount of the promissory notes issued in connection with a dividend of undistributed S Corporation earnings, to repay indebtedness and for general corporate purposes including potential acquisitions. |
| Name of Shareholder | % Owned Before | % Owned After |
| Monte R. Balck | 100.00% | 62.30% |
| Susan K. Black | 10.00% | 6.20% |
| Monte R. Black and Susan K. Black 1994 Irrevocable Trust | 8.10% | 5.10% |
| Ira O. Kane | 7.70% | 4.90% |
| Officer Name | Title | Age |
| Monte R. Black | Chairman of the Board of Directors and Chief Executive Officer | 47 |
| Brad A. Martyn | Corporate Controller | 36 |
| Ira O. Kane | President and Chief Operating Officer, Director | 50 |
| Daniel P. Buettin | Vice President, Chief Financial Officer and Secretary | 44 |