April 12, 2018 / 11:43 AM / 4 months ago

BRIEF-Essendant And Genuine Parts Co's S.P. Richards Business To Combine

April 12 (Reuters) - Essendant Inc:

* PRESS RELEASE - ESSENDANT AND GENUINE PARTS COMPANY'S S.P. RICHARDS BUSINESS TO COMBINE TO FORM STRONGER, MORE COMPETITIVE NATIONAL BUSINESS PRODUCTS DISTRIBUTOR

* ESSENDANT AND GENUINE PARTS COMPANY'S S.P. RICHARDS BUSINESS TO COMBINE TO FORM STRONGER, MORE COMPETITIVE NATIONAL BUSINESS PRODUCTS DISTRIBUTOR

* ESSENDANT INC - TRANSACTION IMPLIES A VALUATION OF S.P. RICHARDS OF ABOUT $680 MLN

* ESSENDANT INC - TRANSACTION COMBINING ESSENDANT AND S.P. RICHARDS IS STRUCTURED AS A REVERSE MORRIS TRUST

* ESSENDANT-UPON CLOSING, GENUINE PARTS SHAREHOLDERS WILL OWN ABOUT 51% AND ESSENDANT SHAREHOLDERS WILL OWN ABOUT 49% OF COMBINED CO ON A DILUTED BASIS

* ESSENDANT INC - CHARLES K. CROVITZ, CURRENT CHAIRMAN OF BOARD OF ESSENDANT, WILL SERVE AS CHAIRMAN OF BOARD OF COMBINED COMPANY

* ESSENDANT - UPON DEAL CLOSING, GENUINE PARTS SHAREHOLDERS TO OWN ABOUT 51% & ESSENDANT SHAREHOLDERS TO OWN ABOUT 49% OF COMBINED CO ON DILUTED BASIS

* ESSENDANT INC - DEAL HAS BEEN UNANIMOUSLY APPROVED BY BOARDS OF CO & GENUINE PARTS COMPANY, IS EXPECTED TO BE TAX FREE TO COS RESPECTIVE SHAREHOLDERS

* ESSENDANT INC - GENUINE PARTS TO SEPARATE S.P. RICHARDS INTO STANDALONE CO & SPIN OFF STANDALONE CO TO GENUINE PARTS' SHAREHOLDERS, FOLLOWED BY MERGER OF ESSENDANT, SPUN-OFF CO

* ESSENDANT INC - UPON CLOSE OF DEAL, COMBINED COMPANY, WHICH WILL BE CALLED ESSENDANT, WILL BE LED BY ESSENDANT PRESIDENT AND CEO RIC PHILLIPS

* ESSENDANT - COMBINED CO WILL HAVE 3 ESSENDANT-APPOINTED DIRECTORS, 4 GENUINE PARTS-APPOINTED DIRECTORS, AND 4 DIRECTORS APPOINTED BY MUTUAL AGREEMENT

* ESSENDANT INC - S.P. RICHARDS PRESIDENT AND CEO RICK TOPPIN WILL BE APPOINTED CHIEF OPERATING OFFICER OF COMBINED COMPANY

* ESSENDANT INC - SEES $75 MLN IN ANNUAL RUN-RATE COST SYNERGIES AND MORE THAN $100 MLN IN WORKING CAPITAL IMPROVEMENTS FROM DEAL

* ESSENDANT INC - COMBINED COMPANY WILL MAINTAIN HEADQUARTERS IN BOTH DEERFIELD, IL AND ATLANTA, GA

* ESSENDANT INC - DEAL CREATES A CO WITH PRO FORMA 2017 NET SALES OF ABOUT $7 BLN, $300 MLN IN ADJUSTED EBITDA, 4.2% ADJUSTED EBITDA MARGINS

* ESSENDANT - COMBINED CO EXPECTS 90% OF COST SYNERGIES TO BE REALIZED WITHIN 2 YEARS POST-CLOSING & TO INCUR LESS THAN $50 MLN IN ONE-TIME CASH COSTS

* ESSENDANT INC - TRANSACTION HAS BEEN UNANIMOUSLY APPROVED BY BOARDS OF ESSENDANT AND GENUINE PARTS

* ESSENDANT - COMBINED COMPANY WILL BE CALLED ESSENDANT, & BE LED BY ESSENDANT PRESIDENT AND CEO RIC PHILLIPS, AND JANET ZELENKA WILL SERVE AS CFO Source text for Eikon: Further company coverage:

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