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Core & Main appoints new chairman amid board reshuffle

EditorNatashya Angelica
Published 09/02/2024, 04:46
© Reuters.
CNM
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ST. LOUIS - Core & Main Inc. (NYSE: CNM), a company specializing in infrastructure solutions, announced today that Stephen O. LeClair has been named the new chairman of its board of directors. LeClair, who will maintain his role as CEO, succeeds James G. Berges. Concurrently, James G. Castellano has been designated as the lead independent director, and Kathleen M. Mazzarella will take on the role of chair of the nominating and governance committee.

The leadership changes follow the departure of four board members, all affiliates of Clayton, Dubilier & Rice (CD&R), who resigned after CD&R divested its remaining stake in the company in January 2024. The departing members had been on Core & Main's board since 2017, a period during which CD&R held a majority interest.

In his statement, LeClair expressed gratitude to the outgoing board members for their contributions to Core & Main's growth and development. He also highlighted his optimism about the company's future and its commitment to providing value to shareholders through local service and profitable growth.

Berges reflected on his tenure as chairman, noting the significant growth Core & Main has experienced and its expansion in products, services, and capabilities, which he said has added value for customers.

Core & Main, headquartered in St. Louis, operates approximately 320 locations across the United States. The company offers a range of products and services for water, wastewater, storm drainage, and fire protection to municipalities, private water companies, and contractors. It employs around 4,500 associates dedicated to supporting community infrastructure.

This news comes from a press release statement and follows Core & Main's caution regarding forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from anticipated outcomes.

InvestingPro Insights

Amidst the leadership transition at Core & Main Inc. (NYSE: CNM), the company's financial performance and market position continue to offer insights for investors. According to real-time data from InvestingPro, Core & Main boasts a robust market capitalization of $8.87 billion, reflecting investor confidence in the company's business model and market presence.

One of the InvestingPro Tips highlights that management has been aggressively buying back shares, indicating a strong belief in the company's value and future prospects. This aligns with CEO Stephen O. LeClair's optimism about Core & Main's growth potential. Furthermore, the company has shown a high return over the last year, with a 94.48% one-year price total return, showcasing its impressive performance in the market.

InvestingPro Data metrics reveal a Price / Book ratio of 5.01 for the last twelve months as of Q3 2024, suggesting the stock is trading at a premium compared to its book value. Moreover, with a P/E ratio of 20.16 and an adjusted P/E ratio of 22.25 for the same period, Core & Main is valued favorably in terms of its earnings. These metrics, combined with a solid gross profit margin of 27.23%, lay the groundwork for the company's financial health and investor appeal.

For investors seeking a comprehensive analysis and additional insights, InvestingPro offers more tips that can further inform investment decisions. Utilize coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription, and explore the full range of InvestingPro Tips, including the company's liquid assets position, moderate level of debt, and analysts' profitability predictions for the year.

With 11 additional tips listed in InvestingPro, investors have a wealth of information at their fingertips to assess Core & Main's investment potential in the context of its leadership changes and ongoing market activities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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