Shareholders Approve Terms for White Cap

Shareholders of White Cap Industries Inc. approved a buyout bid by its management and a group led by Leonard Green & Partners LP, a Los Angeles-based private merchant banker, the Costa Mesa company said Monday.

White Cap, which sells tools to building contractors in the western United States, had delayed the special shareholders meeting last month, then reduced a planned loan and junk bond sale by 16% to $185 million. The companies are working to complete the transaction, White Cap said.

The group, which offered to buy White Cap for $16.50 a share, or about $240 million, plans to take White Cap private. The stock closed Monday at $14.50 a share, up 44 cents.

The company also posted higher third-quarter earnings and revenue. Net income rose 8% to $2.7 million, or 25 cents a share, from $2.5 million, or 23 cents a share, for the same period a year earlier. Revenue rose 8% to $79.7 million.