White Cap Calls Off Merger Plans

The stock market has thrown a wrench into White Cap Industries Inc.’s ambitious acquisition plans.

The company, which operates warehouse stores that sell tools and building materials to contractors, said Monday it has called off its agreement to buy Santa Ana-based Junior’s Tools, a 12-store chain that specializes in selling power tools.

White Cap said it was calling off the deal primarily because of market conditions. The Costa Mesa company didn’t elaborate, but it said at the time the deal was announced in June that it planned to issue stock to finance the acquisition.

The company announced the canceled deal after the market closed. White Cap’s stock closed at $10.25, off 25 cents. At the time the acquisition agreement was announced June 22, the stock was trading around $19 a share.

Early in August, White Cap also called off plans to acquire Valley Construction Supply Inc. in Washington.

But White Cap said it still hopes to acquire more companies in the future. The company operates 36 branch locations in the western United States and has more than 900 employees.