White Cap Industries to Offer Shares
White Cap Industries Inc., an equipment supplier to builders in California and other Western states, plans to raise $68.5 million, after expenses, in an initial public offering of common shares.
The Costa Mesa company didn’t say in its filing with the Securities and Exchange Commission how many shares or at what price it expects to sell, but it said that current shareholders will retain majority control afterward.
The company will use $64.8 million of the proceeds from the first-time stock sale to repay debt. An additional $3 million will be used to redeem and pay dividends on preferred stock, while the rest will be used for general purposes, the filing said.
White Cap is run by Greg Grosch, who founded the company in 1976. Grosch, 50, formerly a marketing executive with a grocery store chain and an oil company, owns 44.4% of the company now. KRG Capital Partners LLC, an investment firm managed by White Cap board member Mark King, owns 31%.
White Cap, which earned $2.8 million on $101.8 million in sales for the year ended March 31, provides construction materials, tools, fasteners and other items to professional building contractors through 17 California stores and one store each in Phoenix, Denver and Las Vegas, the filing said.
