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Expands and Enhances Presence in Multiple California Metro Areas and Marks Company’s Entry into the Las Vegas Market
Demonstrates Continued Execution of Long-Term Growth Strategy
GMS Inc. (NYSE: GMS), a leading North American specialty distributor of interior building products, today announced that it has entered into a definitive agreement to acquire substantially all the assets of Westside Building Material ("Westside"), one of the largest independent distributors of interior building products in the U.S., for $135 million in cash.
Founded in 1935 and headquartered in Anaheim, CA, Westside is a leading supplier of steel framing, wallboard, acoustical ceilings, insulation and related building products serving commercial and residential markets. Westside’s distribution network comprises ten locations, including nine across California (Anaheim, Hesperia, Oakland, Chatsworth, Fresno, Lancaster, Santa Maria, San Diego and National City) and one in Las Vegas, NV. For the twelve months ended December 31, 2020, Westside generated net revenues of approximately $200 million.
John C. Turner, President and Chief Executive Officer of GMS, said, "The acquisition of Westside reflects the continued execution of our growth strategy and brings together two leading organizations with shared cultures and entrepreneurial values. Westside’s differentiated platform provides a unique opportunity for GMS to expand our reach and capture significant growth opportunities in strategically important West Coast markets. We are pleased to welcome Dick, Bill and the entire Westside team to GMS and believe that through this combination we will create new opportunities to deliver world-class service to our customers and value to our stakeholders for years to come."
The transaction follows several previous acquisitions and greenfield expansions by GMS in California, accelerating the Company’s long-term strategy of growing through platform expansion. With the addition of Westside, GMS expands its service position in several Top 100 metro areas in California, including the greater Los Angeles, Bay Area, Riverside-San Bernardino, San Diego and Fresno markets, and creates a statewide distribution platform to serve customers throughout California. The acquisition also marks GMS’s entry into the attractive and growing Las Vegas market.
"Throughout Westside’s long history, we have prided ourselves on providing superior service through high quality operations and an entrepreneurial culture," said Dick Peckham, President of Westside. Bill Peckham, Chief Executive Officer of Westside, added "Partnering with GMS gives us the opportunity to continue delivering on that mission on a much larger scale. We expect the transaction to create exciting opportunities for our employees, customers and suppliers alike."
Transaction Details, Leadership and Closing
Westside’s current management team, including President Dick Peckham and Chief Executive Officer Bill Peckham, will continue to lead the business and provide the same high level of service that its contractor and homebuilder customers have come to expect.
Following the close of the transaction, Westside will continue to operate under the "Westside" brand – as it has for over 85 years. In addition, Westside will partner with seven existing GMS locations across California operating under the "J&B Materials," "Hathaway Building Materials," and "Charles G. Hardy" banners to provide an exceptional customer experience.
The transaction is expected to close early in the third calendar quarter of 2021, subject to the satisfaction of customary closing conditions.
Celebrating the 50th anniversary of its founding in 1971, GMS operates a network of more than 265 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.
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/20210511005753/en/
Leslie H. Kratcoski
Vice President, Investor Relations