DEERFIELD, Ill., Oct. 25, 2017 /PRNewswire/ -- Essendant Inc.
(NASDAQ: ESND), a leading national wholesale distributor of
business products, announced today that its Board of Directors has
elected Richard D. Phillips,
President and Chief Executive Officer, effective immediately. Mr.
Phillips, who had been serving as interim president and CEO
since June 2017, was also elected to Essendant's Board of
Directors and the Board's Executive Committee. The Board has
been expanded from nine to ten members with the addition of Mr.
Phillips.
"Following a thorough search, with assistance from an
independent search firm, we firmly believe that Ric is the right
person to lead Essendant as we continue to execute our long-term
transformation plan," said Charles K.
Crovitz, Essendant's Chairman of the Board. "Ric has
proven expertise across our platform and channels, including
responsibility for the successful turnaround of our Industrial
business and leadership of many of our growth businesses.
Since stepping in as interim CEO, he has intensified our
transformation efforts, developing the plan to aggressively execute
against our strategic drivers. Ric and the Board are aligned
that we must act with urgency and intensity to alter the trajectory
of our business as we implement the actions necessary to position
Essendant for long-term success."
Mr. Phillips added, "With the support of our strong team we have
made important progress advancing our transformation initiatives in
recent quarters. We recognize that we have much more to do,
and I am excited to continue to work closely with the Board and the
Essendant team as we move quickly to drive our strategy
forward. I am confident in our future and believe that we can
deliver improved performance and long-term value for
shareholders."
Richard D. Phillips Biography
Mr. Phillips joined Essendant in January
2013 as President of Online and New Channels. He
subsequently served as President, ORS Nasco, beginning in
November 2015, and he was named Group
President of Industrial in August
2016, when he added responsibility for Essendant's
automotive and e-commerce businesses. Mr. Phillips was named
Interim President and Chief Executive Officer in June 2017. Prior to joining Essendant, Mr.
Phillips spent 14 years at McKinsey & Company, where he was
elected Partner in 2005. At McKinsey, he worked across
industry sectors, with a functional emphasis in strategy,
commercial performance and operations, including several long-term
engagements involving strategy implementation. He previously
spent six years at Baxter Healthcare in various finance and sales
roles. Mr. Phillips earned a B.S. degree in Finance from
Indiana University and a Masters of
Management degree, with distinction, from the Kellogg Business
School at Northwestern University.
Forward-Looking Statements
This news release contains forward-looking statements, including
references to goals, plans, strategies, objectives, projected costs
or savings, anticipated future performance, results or events and
other statements that are not strictly historical in nature. These
statements are based on management's current expectations,
forecasts and assumptions. This means they involve a number
of risks and uncertainties that could cause actual results to
differ materially from those expressed or implied here. These
risks and uncertainties include, but are not limited to the
following: Essendant's reliance on key customers, and the risks
inherent in continuing or increased customer concentration and
consolidations; the impact of price transparency, customer
consolidation and product sales mix changes on the Company's sales
and margins; Essendant's reliance on independent resellers for a
significant percentage of its net sales and, therefore, the
importance of the continued independence, viability and success of
these resellers; Essendant's reliance on supplier allowances and
promotional incentives; Essendant's exposure to the credit risk of
its customers; continuing or increasing competitive activity and
pricing pressures within existing or expanded product categories,
including competition from e-tailers and product manufacturers who
sell directly to Essendant's customers; the impact of supply chain
disruptions or changes in key suppliers' distribution strategies;
continued declines in end-user demand for products in the office,
technology and furniture product categories; Essendant may
experience financial cycles due to secular consumer demand,
recession or other events, most notably in the Company's Industrial
and Automotive businesses; the impact of the Company's
transformation program and possible disruption of business
operations and relationships with customers and suppliers;
Essendant's ability to manage inventory in order to maximize sales
and supplier allowances while minimizing excess and obsolete
inventory; Essendant's ability to attract and retain key management
personnel; the costs and risks related to compliance with laws,
regulations and industry standards affecting Essendant's business;
Essendant's ability to maintain its existing information technology
systems and to successfully procure, develop and implement new
systems and services without business disruption or other
unanticipated difficulties or costs; the impact on the Company's
reputation and relationships of a breach of the Company's
information technology systems or a failure to maintain the
security of private information; the availability of financing
sources to meet Essendant's business needs; Essendant's success in
effectively identifying, consummating and integrating acquisitions;
and unexpected events that could disrupt business operations,
increasing costs and decreasing revenues.
Shareholders, potential investors and other readers are urged to
consider these risks and uncertainties in evaluating
forward-looking statements and are cautioned not to place undue
reliance on the forward-looking statements. For additional
information about risks and uncertainties that could materially
affect Essendant's results, please see the company's Securities and
Exchange Commission filings. The forward-looking information
in this news release is made as of this date only, and the company
does not undertake any obligation to update any forward-looking
statement. Investors are advised to consult any further
disclosure by Essendant regarding the matters discussed in this
news release in its filings with the Securities and Exchange
Commission and in other written statements it makes from time to
time. It is not possible to anticipate or foresee all risks
and uncertainties, and investors should not consider any list of
risks and uncertainties to be exhaustive or complete.
Company Overview
Essendant Inc. is a leading national wholesale distributor of
workplace items, with 2016 net sales of $5.4
billion. The company sells a broad assortment of over
190,000 items, including janitorial and breakroom supplies,
technology products, traditional office products, industrial
supplies, cut sheet paper products, automotive products and office
furniture. The Company's network of 70 distribution centers enables
the Company to ship most products overnight to more than ninety
percent of the U.S. For more information, visit
www.essendant.com.
Essendant common stock trades on the NASDAQ Global Select Market
under the symbol ESND.
For Further Information Contact:
investorrelations@essendant.com
(847) 627-2900
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SOURCE Essendant Inc.