ORCO Announces Entering into Sale Agreement

April 7, 2009 - PRLog -- LIVERMORE, Ca.  – ORCO Construction Supply, Inc. (ORCO) today announced that, on April 2, 2009, it entered into an asset purchase agreement to sell ORCO’s assets to ACSP, LLC (“ACSP”), an entity controlled by Greg Grosch, the cofounder of White Cap Construction Supply. To consummate the sale, ORCO will file for relief under the Federal Bankruptcy Code. The sale is contingent upon ACSP obtaining financing and remains subject to overbids under a Section 363 process and bankruptcy court approval.

"The strength of Mr. Grosch’s relationships in and knowledge of the construction supply industry were two major factors in the decision making process of ORCO’s board of directors to approve the sale to ACSP," said ORCO Chief Executive Officer & President Peter Alexander. Mr. Alexander added, “Despite the required reorganization, ORCO intends to continue to operate its business through the sale date which is expected to occur at the end of May.  Additionally, subject to reaching amenable agreements with its landlords, it is also anticipated that the purchaser will continue to operate in its existing locations.”

About ORCO
Founded in 1957, ORCO is a leading independent supplier to construction professionals in California, Arizona and Nevada, operating out of 12 distribution locations and 2 rebar facilities.

About Mr. Grosch
Mr. Grosch formerly served as Chairman, Chief Executive Officer and President of White Cap Construction Supply (“White Cap”).  Mr. Grosch cofounded White Cap in 1976. Mr. Grosch was directly involved in all aspects of White Cap’s business and implementation of its growth strategy from 1976 until 2001. In July 1999, Mr. Grosch and KRG Capital Partners, L.P. negotiated the sale of White Cap to Leonard Green & Partners, L.P.  In May 2004, Leonard Green sold White Cap to HDS IP Holding, LLC.

About M&A Capital
M&A Capital, LLC acts as ORCO’s financial advisor. To contact or for additional information on M&A Capital, visit: www.mandacap.com.

Contact:
Peter C. Alexander
For ORCO Construction Supply, Inc.
(925) 960-6178

Thomas J. Murphy
For M&A Capital, LLC
(818) 707-8322