6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
Hagemeyer North America gets 75 percent of its sales in the U.S. manufacturing sector. Organic growth for its third quarter was a negative 9.1%, following a negative organic growth of 6.8% in the first six months of the year. The company's Q3 organic growth in the United Kingdom was at a negative 5% overall compared with 2002. It lost "share of wallet" with UK customers due to drops in service levels caused by new logistics and computer systems. In EUR ope, Hagemeyer's organic growth in the third quarter was down 7.2%, compared to 9.3% negative during the first six months of 2003.
Timetable of events
In October, Hagemeyer NV announced it had entered into a standstill agreement with virtually all its lenders until Nov. 9, with an extension possible to Feb. 9, 2004. At that time, the company said it was considering several strategies, including restructuring existing debt, new equity capital, possibly including a third-party investor among other solutions. The company said most of the alternatives would involve substantial dilution for the company's current shareholders. One analyst said the refinancing package announced will lead to a 350% dilution.
"Our objective is to implement a recapitalization of the company that provides the necessary operating flexibility and financial strength for our operating companies to to execute their business plans and which is fair to all our stakeholders," said CEO Rob ter Haar at that time.
On Nov. 25, the company announced it had retained Wiet Pot, formerly a managing director with Goldman Sachs, as strategic financial advisor. On Dec. 9, in a conference call, CEO Rob ter Haar announced the refinancing package and his decision to step down.
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