Supply America changes course
The fledgling PHCP roll-up Supply America is reconsidering its financial plan after deciding against an initial public offering, the group's original intent. The state of the stock market and the poor showing by other PHCP companies in recent months convinced Supply America's participants to look at other options, explained Mike Mussog, chief executive officer of the organization.
"We can't go public," Mussog said. "The stocks in the companies in this business stink right now - some for good reason, some for no reason. We are contemplating getting separate financing. However, that changes the deal a little bit in terms of the ability to draw cash out of it, and we are trying to sort that out."
Mussog also expressed frustration at how long the process is taking. "I'm not sure this is the kind of deal all of the companies want to do, but it's certainly not dead."
Supply America President John Thompson said that he and Mussog remain committed to the organization. "It's a wonderful concept," Thompson said. "We had a wonderful response to the presentation I made at the American Supply Association convention."
Mussog said he expects that Supply America will continue to move forward. He hopes to have some of the issues settled by mid-December.
The founding companies of Supply America are Coburn Supply, Beaumont, Texas; D&C Plumbing & Heating Supply, Ann Arbor, Mich.; Davis & Warshow, Maspeth, N.Y.; and Kelly's Pipe, Las Vegas.