GMS Completes Acquisition of Westside Building Material

Rhea-AI Summary

GMS Inc. (NYSE: GMS) has successfully completed its acquisition of Westside Building Material for $135.0 million, funded through cash reserves and credit facility borrowings. This deal significantly boosts GMS's market presence, particularly in major California markets and marks its entry into Las Vegas. CEO John C. Turner Jr. emphasized the strategic importance of such acquisitions for GMS's growth. Celebrating its 50th anniversary, GMS operates over 275 distribution centers offering a comprehensive range of interior construction products.

Positive

• Acquisition of Westside enhances market reach in California and Las Vegas.
• Strategic growth priority through accretive acquisitions.
• Strengthens GMS's position as a leading distributor in the interior building products sector.

Negative

• The substantial $135 million expenditure could impact cash flow.
• Integration challenges may arise with the addition of Westside.

GMS Inc. (NYSE: GMS), a leading North American specialty distributor of interior building products, today announced the successful completion of its previously announced acquisition of Westside Building Material (“Westside”), one of the nation’s largest independent distributors of interior building products.

“Building on the momentum of our very solid fourth quarter 2021 earnings report, we are pleased to announce the successful completion of this transaction and welcome the Westside team to GMS,” said John C. Turner Jr., President and Chief Executive Officer of GMS. “Westside significantly increases our reach in several major California markets and represents our first foray into the Las Vegas market. Expanding our geographic platform through accretive acquisitions, such as this one, continues to be a vital component of our strategic growth priorities.”

GMS funded the $135.0 million purchase price proceeds with cash on hand and available borrowings on its revolving credit facility.

About GMS

Celebrating the 50^th anniversary of its founding in 1971, GMS operates a network of more than 275 distribution centers across the United States and Canada. GMS’s extensive product offering of wallboard, suspended ceilings systems, or ceilings, 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.

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FAQ

What is the significance of GMS acquiring Westside Building Material?

The acquisition significantly expands GMS's reach in California and introduces it to the Las Vegas market, enhancing its market presence.

How much did GMS pay for the acquisition of Westside?

GMS funded the acquisition with a total purchase price of $135.0 million.

How does the acquisition affect GMS's strategic growth?

This acquisition aligns with GMS's strategy to grow through accretive acquisitions, thus expanding its geographic footprint.

What financial resources did GMS use for the Westside acquisition?

GMS funded the $135 million acquisition using cash on hand and available borrowings on its revolving credit facility.