Core & Main, Inc., a U.S. firm specializing in fire protection and water products and infrastructure, has filed initial documents with the SEC to go public.
Core & Main offers specialty products and services for the maintenance, repair, replacement, and construction of water and fire protection infrastructure. It plans to offer nearly 34.9 million shares of its common stock in the IPO. What are the details for the Core & Main IPO?
Core & Main business
Core & Main, a conglomerate of over 80 legacy companies, was formed in 2017. Its businesses provide fire protection products as well as water, sewer, and storm drain products. According to the company, it holds the number one position in the market in the U.S.
Steve LeClair is Core & Main's chief executive, while Mark Witkowski is the vice president and chief financial officer. The company’s stated vision is “to foster a world where communities thrive because our people and products provide safe, sustainable infrastructure for generations to come.”
Core & Main has its headquarters in St. Louis. Currently, the company is owned by the investment funds of private equity firm Clayton, Dubilier & Rice (CD&R), which bought the company from HD Supply Holdings in 2017.
The firm has a network of about 285 branch locations across 47 states and 170 metropolitan statistical areas. The company connects over 4,500 suppliers and more than 60,000 long-time customers.
Core & Main IPO news
Core & Main filed its registration on Form S-1 with the SEC in May and has now launched its roadshow for the IPO. The IPO is expected to have nearly 34.9 million shares at a price range of $20–$23 apiece. The company could reach a valuation of up to $7.5 billion in the IPO, according to Reuters.
At the top of the proposed price range, Core & Main’s IPO could raise $802.3 million in capital. In its fiscal year ended January 31, the firm reported a 7 percent increase in net sales to $3.64 billion.
Core & Main's valuation, stock price, and stock symbol
Core & Main has filed its intent to list publicly on the NYSE under the ticker symbol "CNM." The price range is set between $20–$23 per Class A share.
A key segment of Core & Main’s business is its fire protection products. In 2018, the U.S. was dominating the fire protection equipment market. It's expected to grow at a 12.10 percent CAGR during the forecast period up to 2025.
The lead underwriters of the Core & Main IPO are Goldman Sachs & Co., Credit Suisse, and J.P. Morgan. The underwriters will likely be granted a 30-day option to purchase up to an additional 5,232,558 shares of its Class A common stock at the IPO price, less underwriting discounts and commissions.
Additional book-running managers include BofA Securities, Baird, Citigroup, RBC Capital Markets, Barclays, and Deutsche Bank Securities, according to BusinessWire.
After the IPO is completed, CD&R is to control about 79.6 percent of the company.