A proposed merger between two Southeast construction suppliers has been abandoned after one of the companies decided to pull out of the deal.
South Carolina-based New South Construction Supply late last month announced an agreement to acquire Georgia-based American Contractors Supply. New South officials said the deal would create a market leader in tilt-up concrete construction, while ACS President and CEO Jason Reuter said he looked forward to the company becoming a trusted service resource for contractors, “not just a vendor.”
Less than three weeks later, however, the companies announced that the agreement had been dissolved. Reuter said in a statement that as the deal approached, it became apparent that “this was not the right time to sell ACS.”
“My customers and associates feel strongly that we are on a great path and selling the business at this time would be an unnecessary distraction,” Reuter said. “I still firmly believe that New South is the right buyer for ACS — when the time is right for us to sell.”
New South executives said although they were disappointed, “we understand Jason’s change of heart in selling his business.”
“We have no doubt that ACS will continue to do great things,” said New South CEO Jim Sobeck and COO Abhi Singh.