Interline Brands CFO to step down, Company also agrees to buy JanPak Inc.
Jacksonville-based Interline Brands Inc., which distributes and markets maintenance, repair and operations products, announced Tuesday that Chief Financial Officer John Ebner told the board he will step down.
Interline said Ebner informed the board "of his desire to leave the company to pursue new opportunities closer to his family." He will remain as CFO through March. A formal search has begun for his replacement.
Interline Chairman and CEO Michael Grebe said it has been a pleasure to work with Ebner the past three years.
"John has played an important role in a number of strategic initiatives for the company, and we are particularly grateful for his efforts in connection with our recent merger transaction with our new private equity sponsors," Grebe said in a news release.
"Led by John, our finance team also played a pivotal role in strengthening our capital structure, completing the acquisitions of CleanSource and NCP, and improving our working capital, operating cash flows and expense management," Grebe said.
Interline announced a $1.1 billion buyout agreement in May with affiliates of investment banking giant Goldman Sachs and private equity firm P2 Capital Partners LLC. The deal was completed Sept. 7.
In a recent Securities and Exchange Commission filing, Interline reported the new ownership structure of the company. Goldman Sachs now controls 84 percent of the company, P2 controls 14 percent and certain members of Interline's management own the other 2 percent.
Interline also announced Tuesday it has entered into an agreement to buy JanPak Inc. for $82.5 million in cash, subject to working capital and other closing adjustments.
Interline said the acquisition is expected to close before the end of this year and will be financed with borrowings under Interline's existing senior credit facility.
JanPak was founded in 1945 and is headquartered in Davidson, N.C. It is a regional distributor of janitorial and sanitation, referred to as "JanSan," supplies and packaging products.
Interline reported JanPak primarily serves property management and building service contractors as well as manufacturing, health care and educational facilities through 17 distribution centers across the Southeast and South Central U.S.
For the 12-month period that ended Oct. 31, JanPak generated sales of about $232 million and net income of about $2.2 million.
"JanPak is a well-run business with a deep and talented team that has built a leadership position in the Southeast JanSan market," said Grebe in a news release.
In Jacksonville, work continues on space for JanPak in the Crossroads Distribution Center at 6600 Pritchard Road.
In September, the City approved a build-out for 84,244 square feet of space at a project cost of $458,000. Two weeks ago, it approved the installation of commercial storage racks in Building 300 at a cost of $135,000. Deep South Electric Inc. is the contractor for both projects.
The Daily Record has reported JanPak signed a lease for the space in a previously unoccupied warehouse but will leave 90,000 square feet it leased in the nearby Westside Industrial Park.
JanPak is the first tenant in the speculative building built by Atlanta-based Republic Property Co.
Although Interline is now privately owned, it announced third-quarter results in mid-November. The company recorded a net loss of $28.4 million in the quarter, due to $54.6 million in merger-related expenses. Excluding those expenses, adjusted operating income rose 6.1 percent to $27.7 million.
Sales in the quarter rose 5.7 percent to $350.3 million.
Interline employs about 565 people in Jacksonville and 3,600 throughout its national network. Company officials have said the buyout does not affect operations.