Watsco extends tender offer for ACR by a matter of hours, revises guidance

By Lisa Kerner

Charlotte, N.C., July 20 - Watsco, Inc. extended its tender offer for ACR Group, Inc. to midnight ET on Aug. 3, from 5 p.m. on ET Aug. 3, according to a company news release.

On July 5, Watsco announced that it will acquire ACR Group in a $6.75-per-share cash tender offer.

As previously reported, the offer is conditioned on Watsco's receipt of at least 66 2/3% of the outstanding shares. ACR executive officers and their affiliates agreed to tender their shares, which are about 26% of the company's outstanding stock.

Guidance revised

Watsco also revised its earnings per share guidance for the year ending Dec. 31 to between $2.70 and $2.80 per diluted share. Previous guidance was in the range of $3.25 to $3.35 per diluted share. The company estimated its second-quarter earnings per share to be 87 cents to 88 cents per diluted share, the second-highest result for the period on a 7% sales decline.

"Our revised guidance reflects our belief that the current business climate may persist for the remainder of 2007," president and chief executive officer Albert Nahmad said in the release.

"We are actively seeking acquisitions, product opportunities and considering additional new locations to take advantage of our terrific financial position."

The company recently closed on the sale of its staffing unit, Dunhill Staffing Systems, Inc., to ATS Group LLC. The divestiture is not expected to have a material impact on Watsco's financial position or results of operations.

Coconut Grove, Fla.-based Watsco distributes equipment and supplies for air conditioning, heating and refrigeration.

ACR is a Houston-based distributor of air conditioning and heating products.

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