Platinum Energy increases offer for Industrial Distribution; Wesco drops out

By Lisa Kerner

Charlotte, N.C., April 22 - Platinum Equity Advisors, LLC increased its offer price for Industrial Distribution Group, Inc. to $11.80 per share from $10.30, topping the $11.75-per-share offer for the company from Wesco Distribution, Inc. announced on April 16.

Industrial Distribution was given a deadline of 5 p.m. on Tuesday to accept Platinum Equity's offer and execute an amendment to the companies' agreement and plan of merger, according to a company news release.

Wesco's proposal was deemed superior by Industrial Distribution's board of directors, which gave Platinum Equity until 5 p.m. on Monday to match or top Wesco's offer.

Industrial Distribution said it would accept Platinum Equity's new offer if it does not receive an executed definitive offer, with superior terms for the company's stockholders, from Wesco or Luther King Capital Management Corp. by 3 p.m. ET on Tuesday.

Wesco said in a statement that it would not submit any further bids.

Luther King Capital Management had proposed an $11.70-per-share offer to Industrial Distribution on April 4, it was previously reported.

"We are pleased by Platinum Equity's decision to offer more value to Industrial Distribution's stockholders for their company," chairman Richard M. Seigel said in the release.

"At the same time, we obviously want to take advantage of the opportunity to permit Wesco and Luther King Capital Management to assess their respective interests in possibly acquiring the company at a price above the $11.80 per share that has been offered by Platinum Equity," Seigel added.

Atlanta-based Industrial Distribution supplies maintenance, repair, operating and production products and services to manufacturers and industrial users in the United States and China.

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