GMS Expands Its Complementary Product Offerings in Florida and Announces Further Platform Expansion Activity

Rhea-AI Summary

GMS Inc. (NYSE: GMS) has successfully acquired Construction Supply of Southwest Florida, Inc., enhancing its product offerings in Florida. This acquisition aligns with GMS's growth strategy, adding five new AMES store locations and four greenfield sites across key markets such as Massachusetts, Florida, Ohio, and South Carolina. The company aims to strengthen its local presence and customer service through these expansions, which include a new stucco-focused location in Florida.

Positive

• Acquisition of Construction Supply of Southwest Florida enhances product offerings.
• Expansion with four greenfield locations in key markets.
• Five new AMES stores opened, increasing market coverage.

Negative

• None.

• Florida acquisition expands complementary product offering in Southwest Florida
• Four new greenfield locations expand presence in key markets
• AMES continues to execute its growth strategy with the addition of five new locations

TUCKER, Ga.--(BUSINESS WIRE)-- GMS Inc. (NYSE: GMS), a leading North American specialty building products distributor, today provided an update on the continued execution of its growth strategy with the acquisition of Construction Supply of Southwest Florida, Inc., as well as the recent opening of four new greenfield locations and five new AMES stores since the Company’s last update.

“We are excited to announce the acquisition of Construction Supply of Southwest Florida, Inc., and we welcome the team to the GMS family,” said John C. Turner, Jr., President and Chief Executive Officer. “This acquisition, along with the establishment of four new greenfield locations and five new AMES stores, represent continued execution of our growth strategy through platform expansion and our focus on growing our Complementary Products.”

Construction Supply of Southwest Florida, Inc. (“CSSWF”); Acquired June 1, 2022

Founded in 2002, Construction Supply of Southwest Florida, Inc., which is based in Sarasota, FL, is a leading distributer of various stucco, building, and waterproofing supplies serving the Sarasota, Bradenton, Venice and North Port local markets with broader outreach to the Tampa and Ft. Myers markets. The acquisition of CSSWF further expands GMS’s Complementary Product offerings and establishes an inaugural stucco-focused location in the state of Florida.

Founder Laura Strub and the entire CSSWF team will continue with the business going forward, operating under the original company name. CSSWF will partner with the legacy GMS brand, Gator Gypsum, Inc, a leader in specialty building products distribution in central and southwestern Florida, to provide additional Complementary Product offerings across the region.

Greenfield Location Openings

GMS also recently established four new greenfield locations, expanding its presence to provide enhanced service and product offerings in several markets:

• In Woburn, MA, GMS adds a ninth location to the New England Gypsum Supply, Inc. platform expanding service and capabilities across New England and the broader Northeast market.

• In Wildwood, FL, GMS adds its fourteenth location to the Gator Gypsum, Inc. platform, expanding service from legacy operations in Northern Florida into the Wildwood MSA east of Orlando.

• In Cleveland, OH, GMS adds to its Ohio Valley Drywall Supply operations with a full-product-line location in the Cleveland market, complementing last year’s acquisition of Architectural Coatings Distributors, Inc., which is focused on EIFS/Stucco.

• In West Union, SC, GMS adds to its Tucker Materials, Inc. operations with an additional location servicing the Upstate South Carolina area.

AMES Platform Expansion

Following its acquisition by GMS in December 2021, the AMES platform continues to execute against its growth strategy by adding five new AMES® store locations in Santa Fe Springs, CA, Pensacola, FL, North Charleston, SC, Ocala, FL and Durham, NC, enhancing its market coverage in these geographies.

GMS expects to continue to build on its strong momentum with several additional near-term greenfield and AMES expansion opportunities identified.

About GMS:

Founded in 1971, GMS operates a network of nearly 300 distribution centers with extensive product offerings of wallboard, ceilings, steel framing and complementary construction products. In addition, GMS operates more than 90 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/20220602005217/en/

Carey Phelps

Vice President, Investor Relations

Phone: 770-723-3369

Email: ir@gms.com

Source: GMS Inc.

FAQ

What acquisition did GMS announce in June 2022?

GMS announced the acquisition of Construction Supply of Southwest Florida, Inc. on June 1, 2022.

How many new locations has GMS opened recently?

GMS has opened four new greenfield locations and five new AMES stores.

What regions are affected by GMS's recent expansions?

GMS's recent expansions include locations in Massachusetts, Florida, Ohio, and South Carolina.

What is the stock symbol for GMS?

The stock symbol for GMS is NYSE: GMS.