BEVERLY HILLS, Calif. (July 27, 2005) – Platinum Equity announced today that it has reached a definitive agreement to acquire substantially all of the supply chain and distribution assets of LESCO Inc. (NASDAQ: LSCO), a leading provider of products and supplies to the professional turf care industry.
The assets being acquired include four blending facilities and a majority of the company’s warehouse and distribution centers, along with consumable products inventory stored at those locations including fertilizer, seed, control products, combination products, pest control and related products.
The agreement between LESCO Inc. and Turf Care Supply Corp., an acquisition entity established by Platinum for this transaction, was signed on July 26. The transaction is expected to close before the end of October 2005. Platinum intends to establish the business as a standalone company under a new name that will be announced as part of the post-closing transition.
LESCO Inc. decided to divest its manufacturing and distribution operations in order to focus on its core Service Center and Lawn Care business. The purchase agreement includes a long-term supply contract in which the new company will continue providing manufacturing and distribution services to LESCO.
“This is a transaction in which everyone benefits,” said Robert J. Wentworth, executive vice president for mergers and acquisitions at Platinum.
“For LESCO, it’s a divestiture solution that allows the company to focus on its core business while ensuring continuity of service,” Mr. Wentworth said. “For Platinum, it’s an opportunity to acquire strong supply chain and distribution assets with recurring revenue and a solid future. And for the new company, it is an opportunity to succeed as a standalone business supported by Platinum’s resources and an ongoing business relationship with LESCO.”
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specialized in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, software, telecommunications, logistics, manufacturing, health care products and entertainment distribution. Since its founding in 1995 by entrepreneur Tom Gores, Platinum Equity has acquired more than 50 businesses and built a portfolio of operating companies that today has more than 40,000 employees, more than 600,000 customer sites and aggregate annual revenue of approximately $8 billion. In 2004, Platinum was named the 32nd largest private company in the United States by Forbes magazine.
Senior Vice President
Corporate and Investor Relations