LESCO makes management changes

Cleveland – LESCO, Inc. board of directors appointed Jeffrey L. Rutherford as its president and chief executive officer and authorized the repurchase of up to 1.5 million common shares.

Jeffrey L. Rutherford

Repurchases under the company’s share buy back program will be made in the open market or through privately negotiated transactions. The timing, manner and amount of repurchases will be based on the company’s evaluation of market conditions, applicable legal requirements and other factors.

Rutherford replaces Michael DiMino, who resigned from his positions as president, c.e.o. and director. In addition, Bruce Thorn was named chief operating officer, Michael Weisbarth chief financial officer and controller, and Kathleen Minahan general counsel and secretary. All of the promoted individuals previously held management positions within the organization.

“On behalf of the entire board of directors and senior management at LESCO, I would like to thank Michael DiMino for his contributions to LESCO over the past four years,” J. Martin Erbaugh, chairman of the board of LESCO says. “With the sale of our supply chain assets, these management changes put the right team in place to drive our store-focused strategy.”

As announced on Oct. 7, the company completed the sale of its supply chain assets and consumable products inventory to Turf Care Supply Corp. This transaction completes the transformation of LESCO that began in 2002, resulting in a streamlined operating model focused on the profitable expansion of its service centers and Stores-on-Wheels vehicles networks. Ultimately, the company expects to harvest $25 million in cash after settling all requirements associated with the transaction, including the accounts payable due to vendors for the inventory sold to TCS.

“We are confident that Jeff and this senior team will successfully execute the company’s strategy of operating and expanding the company’s service centers and Stores-on-Wheels initiatives,” Erbaugh says. “We believe the changes announced today will promote the strategic position of LESCO’s unique business franchise and lead to improved financial performance and enhanced shareholder value.”

Third quarter financial results will be reported Oct. 26 at which time the company will address these management changes. The call will be webcast live over the Internet from the company’s Web site at www.lesco.com under the webcast link located on the home page.