SCP POOL COMPLETES PURCHASE OF ADDITIONAL SERVICE CENTERS.COVINGTON, La.--(BUSINESS WIRE)--Sept. 26, 1996--SCP Pool Corporation ("SCP (1) (Service Control Point) A node in an SS7 telephone network that provides an interface to databases, which may reside within the SCP computer or in other computers. ") (Nasdaq/NM:POOL) today announced that it has completed the first of a previously announced two-stage transaction with Bio-Lab, Inc. ("BioLab"), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Great Lakes Chemical Corporation Great Lakes Chemical Corporation is a chemical research, production, sales and distribution company that produces specialty chemicals used for polymers, fire suppressants and retardants, pool and spa water purification systems and various other applications. (NYSE NYSE See: New York Stock Exchange :GLK GLK Glucokinase ). Under the completed stage of the agreement, SCP has expanded its network of service centers by acquiring certain assets (including fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → and inventory) of The B-L Network, Inc., a subsidiary of BioLab which distributes swimming pool supplies through 39 service centers in 12 states. The total consideration paid by SCP for The B-L Network, Inc. assets was approximately $34 million plus the assumption of certain contractual liabilities. The second stage of the agreement, which will be consummated in late October 1996, involves the purchase by BioLab of certain assets of SCP's Alliance Packaging subsidiary, which repackages and markets swimming pool chemicals. The total consideration for the alliance sale will equal the book value of the inventory and the fixed assets to be acquired, which will be determined as of the closing of the sale (but which was approximately $5 million as of June 30, 1996), plus the assumption of certain contractual liabilities. W. B. Sexton, chairman of SCP, said, "By acquiring these additional centers, we have achieved a meaningful advance in our size and geographic scope. The 39 centers we have purchased represent incremental net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of more than $100 million annually. This marks a significant amount of additional business for SCP, considering that our net sales for 1995 totaled $161.1 million. We have already begun implementing a plan to integrate the additional facilities and personnel into our organization. As we start combining these additional centers with our current operating base of 44 centers, we expect to have a stronger competitive position in several major markets which we are currently serving, including California and Arizona. We also now expect to have a more substantive share of the market for swimming pool supplies in Florida. "Once the second part of this transaction is completed, our operating focus will be entirely on our core business of distributing swimming pool supplies and related products. We had also entered into a long-term supply agreement with BioLab covering a substantial portion of SCP's purchases of swimming pool chemicals. This will ensure us a stable source of supply at the most competitive level." SCP Pool Corporation is the largest independent distributor of swimming pool supplies and related products (based on revenues). Through service centers in 22 states, the Company distributes more than 25,000 national brand and private label products to over 10,000 customers. CONTACT: SCP Pool Corp., Covington Maurice D. Van Dyke Van Dyke (or van/Van Dijk or Dyk etc) is a surname of Dutch origin. It refers to:
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