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NEWS
FOR IMMEDIATE RELEASE
Contact: Joseph P. Tomczak
Chief Financial Officer
(817) 885-0000
KEVCO DIVISION AND ADORN IN STRATEGIC DISCUSSIONS
FORT WORTH, TEXAS (DEC. 15, 2000) - Kevco, Inc. (Nasdaq/NM:KVCO) today announced
that discussions are underway with Adorn, LLC of Elkhart, Indiana regarding a
potential strategic combination involving Kevco's Design Components division and
Adorn. Both Design Components and Adorn are leading manufacturers and marketers
of laminated wallboard products, principally for the manufactured housing and
recreational vehicle markets. Fred Hegi, chairman of Kevco, and George Thomas,
chief executive officer of Adorn, indicated that an evaluation of the
feasibility of such a combination is expected to be completed within 60 days. No
proposed terms were announced; and there is no assurance that an agreement in
principle, and subsequent definitive contract, will result from these
discussions.
Hegi commented, "We are announcing these discussions in order for the
evaluation to proceed openly. As we have indicated, Kevco is interested in
pursuing strategic opportunities that could reasonably enhance the current and
future performance of our operating units."
Kevco, headquartered in Fort Worth, Texas, is a leading wholesale
distributor and manufacturer of building products for the manufactured housing
and recreational vehicle industries.
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include those relating to timing of the evaluation
now underway and terms such as "expected," "could," and similar expressions.
Forward-looking statements are not guarantees of future performance and involve
risks and uncertainties. The Company's actual results, performance, achievements
and potential business combinations could differ materially from the results,
performance, achievements and potential business combinations expressed in, or
implied by, these forward-looking statements as a result of various factors,
including without limitation, the Company's substantial leverage and its effects
on the Company's ability to obtain additional capital as needed, the adequacy of
existing funds to meet liquidity needs, the Company's ability to integrate its
operations and realize savings from the implementation of its new management
information systems, the realization of savings from plant consolidations and
staff reduction; the ability of the manufactured housing industry to reduce
inventory, customer demand for manufactured housing and recreational vehicles,
the effect of general economic conditions, including increasing interest rates,
the availability of financing for manufactured housing consumers and the impact
of raw materials prices. This press release speaks as of the date it is
released. The Company does not intend to, and does not undertake to, update
information contained in this press release absent an express obligation to do
so in connection with required filings under Federal securities laws. A
description of these factors, as well as other factors which could affect the
Company's business, is set forth in filings by the Company with the Securities
and Exchange Commission, including the Company's Form 10-K for the year ended
December 31, 1999 and Form 10-Q for the quarter ended September 30, 2000. The
Company's most recent Form 10-K, Form 10-Q and other filings with the Securities
and Exchange Commission are available online at no charge to the user through
the SEC's website at www.sec.gov.
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