GMS Announces Ongoing Platform Expansion Activity

Rhea-AI Summary

GMS, a North American distributor of interior building products, announced two strategic acquisitions: DK&B Construction Specialties EIFS division and Architectural Coatings Distributors, Inc. These moves aim to enhance GMS's product offerings and expand its market presence, particularly in Nebraska and Northeast Ohio. Additionally, GMS opened five new locations to improve service capabilities across several U.S. and Canadian markets. This expansion aligns with their growth strategy and marks GMS's commitment to strengthen its position in the industry.

Positive

• Acquisition of DK&B Construction Specialties EIFS division enhances product offerings in Nebraska.
• Acquisition of Architectural Coatings Distributors increases market presence in Northeast Ohio.
• Opening of five new locations improves service capabilities in key markets.
• Expansion supports GMS's growth strategy and diversifies product offerings.

Negative

• None.

GMS Inc. (NYSE: GMS), a leading North American specialty distributor of interior building products, today provided an update on the continued execution of its growth strategy with the acquisitions of DK&B Construction Specialties EIFS division and Architectural Coatings Distributors, Inc., as well as the recent openings of five greenfield locations.

“We are excited to announce the acquisitions of both the DK&B EIFS division and Architectural Coatings Distributors, Inc., and we welcome the teams to the GMS family,” said John C. Turner, Jr., President and Chief Executive Officer. “These acquisitions, along with the establishment of five new greenfield locations, represent continued execution of our growth strategy through platform expansion and our focus on growing complementary products.”

DK&B Construction Specialties, Inc. EIFS Division (“DK&B”); Acquired August 2, 2021

Founded in 1986, DK&B is a leading EIFS/Stucco operation serving the Nebraska market through a single location in Omaha, NE. With the addition of DK&B’s EIFS division, GMS expands its complementary product offering and expertise throughout the Greater Nebraska market.

Co-Owner Chris Tierney, as well as the entire DK&B team, will continue with the business going forward, operating in partnership with three legacy GMS locations in Omaha, Lincoln and Kearney, NE operating under the DSI Brand to better service contractors across the state.

Architectural Coatings Distributors, Inc. (“ACD”); Acquired June 8, 2021

Founded in 1992, ACD is a specialty EIFS/Stucco operation serving the Northeast Ohio market through a single location in Cleveland, OH. The acquisition of ACD further expands GMS’s complementary product offerings and adds an EIFS/Stucco product line to its legacy platform.

Founder Brad Barr and the entire ACD team will continue with the business going forward. The acquired business will operate under the local Ohio Valley Drywall Supply (“OVDS”) brand and will partner with the three legacy OVDS locations operating in Stow, OH, Trafford, PA and Meadowlands, PA. Additionally, the acquisition of ACD represents GMS’s first location in the Cleveland, OH market, a top 40 Metropolitan Statistical Area (“MSA”).

Greenfield Location Openings

GMS also recently established five new greenfield locations, expanding its presence to provide enhanced service and product offerings in several markets, and added a facility dedicated to driving growth in its acoustical ceilings offerings in Colorado.

• In Scarborough, ON, GMS Canada adds a ninth location servicing Southern Ontario under the Watson Building Supplies platform. The new location enhances GMS’s market density and service capabilities in the Greater Toronto Area (“GTA”), the largest metro area in Canada and 7^th largest in North America.

• In Hickory, NC, GMS adds its eleventh location to the Colonial Materials, Inc. platform, expanding service from legacy operations in the Charlotte and Winston-Salem areas west into the Catawba Valley area and enabling service to the town of Boone, NC.

• In Wilmington, DE, GMS adds the nineteenth location for Capitol Building Supply, Inc. to complement four legacy locations in the Lower Delaware Valley. The greenfield opening also comes on the heels of GMS’s recent entry into the Atlantic City, NJ market during February 2021.

• Following entry into the Memphis, TN metro area earlier in 2021, GMS adds its first location in the state of Mississippi and enters the Jackson, MS market, a top 100 MSA. The GMS platform now covers 46 US states and 6 Canadian Provinces.

• In Denver, CO, GMS establishes a dedicated facility focused on growth of its ceilings business in the state after expanding its Armstrong relationship to include the Eastern Slope area of Colorado.

About GMS:

Celebrating the 50^th anniversary of its founding in 1971, GMS operates a vast network of more than 280 distribution centers across the United States and Canada. GMS’s extensive product offering of wallboard, ceilings, steel framing and complementary construction products is designed to provide a comprehensive one-stop-shop for our core customer, the interior contractor who installs these products in commercial and residential buildings.

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/20210809005394/en/

FAQ

What acquisitions did GMS announce in the recent press release?

GMS announced the acquisition of DK&B Construction Specialties EIFS division and Architectural Coatings Distributors, Inc.

How many new locations did GMS open recently?

GMS opened five new locations to enhance its service capabilities.

What markets will GMS expand into with the new acquisitions?

GMS will expand its presence in the Nebraska and Northeast Ohio markets.

What is the significance of GMS's acquisitions and openings?

These acquisitions and new openings align with GMS's growth strategy and diversifies its product offerings.

When were the acquisitions of DK&B and ACD completed?

The acquisition of DK&B was completed on August 2, 2021, and ACD on June 8, 2021.