GMS Announces Acquisitions of Engler, Meier & Justus, Inc. and Blair Building Materials, Inc.; Also Announces Further Platform Expansion Activities

Rhea-AI Summary

GMS Inc. (NYSE: GMS) has completed the acquisitions of Engler, Meier & Justus, Inc. and Blair Building Materials, Inc., enhancing its presence in the Chicago market and Greater Toronto Area. Both acquisitions, finalized on April 3, 2023, aim to expand GMS's product offerings, particularly in drywall and building materials. GMS also announced the opening of a new greenfield yard in Ottawa and two AMES® store locations in Myrtle Beach, SC, and Olive Branch, MS, reinforcing its growth strategy. The company emphasizes the importance of expanding its footprint and product range for future growth.

Positive

• Acquisition of Engler, Meier & Justus, Inc. enhances presence in Chicago market.
• Acquisition of Blair Building Materials, Inc. expands product offerings in the Greater Toronto Area.
• New greenfield location in Ottawa improves service reach in Canada.
• Two new AMES store openings align with growth strategy.

Negative

• None.

TUCKER, Ga.--(BUSINESS WIRE)-- GMS Inc. (NYSE: GMS), a leading North American specialty building products distributor, today announced that it has completed the acquisitions of Engler, Meier & Justus, Inc. (“EMJ”) in Chicago and Blair Building Materials, Inc. (“Blair”) in Ontario, Canada. GMS also announced the recent openings of a new greenfield yard in Ontario and two new AMES store locations, which have all opened since the end of its last fiscal quarter.

“We are pleased to welcome the experienced and highly-respected teams from EMJ and Blair to GMS,” said John C. Turner, Jr., President and Chief Executive Officer of GMS. “With EMJ, we are expanding our presence in the Chicago market to enhance our service levels and extend our reach in that metropolitan area, while the addition of Blair enables us to further scale our Complementary Product offerings in the Greater Toronto Area. Additionally, we are pleased to announce continued growth with the openings of one new greenfield yard and two new AMES store locations. Expanding our footprint, scale and product offerings remains a top priority for the Company.”

Engler, Meier & Justus, Inc.; Acquired April 3, 2023

Founded in 1962, Engler, Meier & Justus, Inc. is a leading distributor of drywall, acoustical ceilings and related interior construction products to the greater Chicago, IL market and EIFS related products in the Southeastern US. EMJ currently operates under multiple brand names, including Westmont Interior Supply House and Contractors Acoustical Supply in Chicago. EMJ’s two Chicago area locations add to GMS’s commercial capabilities in the market, including becoming an Armstrong Ceilings distributor. EMJ’s EIFS locations in Charlotte, Raleigh, and Doraville add to our Complementary Product offerings in the Southeast.

Current VP of Operations, Gary Wietecha, will continue to lead the business going forward, working closely with GMS’s Central Division.

Blair Building Materials, Inc.; Acquired April 3, 2023

Founded in 1950, Blair Building Materials, Inc. provides exteriors, insulation and waterproofing products to customers in the Greater Toronto Area. Operating from a single location in Maple, Ontario, the addition of Blair to the GMS Canada portfolio represents a strategic opportunity to expand access to exterior product lines such as brick, stone and masonry.

President of the Blair team, Dante DiGiovanni, will continue with the business going forward, operating under the Blair brand name but integrating closely with GMS’s Watson brand in Canada.

Greenfield Location Openings

GMS also recently established one new greenfield location:

• In Ottawa, Canada, GMS adds a new location to enhance the service and geographic reach of DL Building Materials in Canada.

AMES Platform Expansion

Following its acquisition by GMS in December 2021, the AMES platform continues to execute against its growth strategy by adding two new AMES® store locations in Myrtle Beach, SC and Olive Branch, MS.

About GMS:

Founded in 1971, GMS operates a network of approximately 300 distribution centers with extensive product offerings of Wallboard, Ceilings, Steel Framing and Complementary Products. In addition, GMS operates approximately 100 tool sales, rental and service centers, providing a comprehensive selection of building products and solutions for its residential and commercial contractor customer base across the United States and Canada. The Company’s unique operating model combines the benefits of a national platform and strategy with a local go-to-market focus, enabling GMS to generate significant economies of scale while maintaining high levels of customer service.

For more information about GMS, please visit www.gms.com.

Forward-Looking Statements and Information:

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify forward-looking statements by our use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "seek," or "should," or the negative thereof or other variations thereon or comparable terminology. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. Forward-looking statements involve risks and uncertainties, including those factors described in the "Risk Factors" section in our filings with the SEC. We undertake no obligation to update any of the forward-looking statements made herein, whether as a result of new information, future events, changes in expectation or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230404005422/en/

Carey Phelps

Vice President, Investor Relations

Phone: 770-723-3369

Email: ir@gms.com

Source: GMS Inc.

FAQ

What acquisitions did GMS announce in April 2023?

GMS announced the acquisitions of Engler, Meier & Justus, Inc. and Blair Building Materials, Inc. on April 3, 2023.

How will the acquisitions affect GMS's market presence?

The acquisitions will enhance GMS's presence in the Chicago market and expand its product offerings in the Greater Toronto Area.

What new locations has GMS opened recently?

GMS opened a new greenfield yard in Ottawa and two new AMES store locations in Myrtle Beach, SC, and Olive Branch, MS.

What is the strategic importance of the recent acquisitions for GMS?

The acquisitions enable GMS to expand its product range and improve service levels in key metropolitan areas.

When were the acquisitions of EMJ and Blair finalized?

The acquisitions of Engler, Meier & Justus, Inc. and Blair Building Materials, Inc. were finalized on April 3, 2023.