Demonstrates Execution of Complementary Product
Growth and Profit Expansion Priorities
Enhances GMS’s Offerings to Professional
Drywall Contractors
GMS Inc. (NYSE: GMS) (“GMS” or the “Company”), a leading
North American specialty distributor of interior building products,
today announced that it has entered into a definitive agreement to
acquire AMES Taping Tools Holding LLC (“AMES”). AMES is the
nation’s foremost provider of automatic taping and finishing
(“ATF”) tools and related products to the professional drywall
finishing industry. The transaction is expected to close in the
Company’s fiscal third quarter 2022 with a purchase price of $212.5
million in cash.
AMES provides a distinctive complement to GMS’s current
offerings, significantly expanding the Company’s presence in the
attractive tools and fasteners market. AMES’s portfolio includes
the industry-leading finishing tool brand, TapeTech®, and the top
specialty interior finishing e-commerce platform, All-Wall®. For
the twelve months ended September 30, 2021, AMES achieved net sales
of approximately $100 million.
“We are pleased to welcome the AMES team to GMS and provide a
full suite of offerings for interior contractors and drywall
finishers,” said John C. Turner, Jr., President and Chief Executive
Officer of GMS. “AMES has highly-respected brands and an
entrepreneurial culture with an attractive growth plan, which all
align well with our strategic priorities and provide an excellent
opportunity for GMS to expand our presence in the growing ATF tools
market. With its multichannel distribution model and strong
customer relationships, AMES is expected to generate accretive
EBITDA margins for GMS. We believe this transaction will add
immediate benefits as part of one of our strategic growth
priorities to diversify our core product offerings, and will
further position GMS to drive long-term growth and shareholder
value.”
Jay Davisson, President and CEO of AMES added, “We are excited
about the opportunity to join the GMS team. Like GMS, customer
service has been a cornerstone of the AMES business since our
founding over 80 years ago. Building on our strong, existing
relationships, we are excited to bring our customer-first culture
and deep industry matter expertise to GMS to create a best-in-class
product and service experience for our customers and growth
opportunities for employees.”
AMES services customers through its multichannel distribution
model including:
1. AMES
Stores – supplies, supports and services residential and
commercial interior finishing applications through a network of
more than 85 store locations that sell drywall finishing products
and provide drywall contractors with the option to purchase or rent
ATF tools from a 100,000-tool fleet shared by AMES stores
platform-wide.
2. Dealer
Distribution – sales of market-leading TapeTech®
Automatic Taping and Finishing Tools and related TapeTech® branded
products through dealers and distributors, including a significant
relationship with GMS’s subsidiary, Tool Source Warehouse.
3. All-Wall®
E-Commerce Platform – Leading E-Commerce retailer of
specialty interior finishing tools and related products.
Transaction Details, Leadership and Closing
GMS expects to fund this transaction with cash on hand and
borrowings under the Company's ABL credit facility. In connection
with this transaction, GMS will be exercising the $100 million
accordion within the Company's ABL agreement, increasing the ABL
borrowing limit from $445 million to $545 million.
Following the closing of the transaction, AMES’s current
management team, including President & CEO Jay Davisson, will
continue to lead the business, which will continue to operate under
the “AMES” brand – as it has for over 80 years.
GMS expects to leverage its existing relationship with AMES and
the sourcing arrangements at GMS’s subsidiary, Tool Source
Warehouse, to expand and enhance AMES’s distribution model, better
capitalize on available growth opportunities and provide an even
higher level of service to customers.
This transaction is expected to close in GMS’s fiscal third
quarter of 2022, subject to the satisfaction of customary closing
conditions, including clearance under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976.
About GMS
Celebrating the 50th anniversary of its founding in 1971, GMS
operates a network of more than 280 distribution centers across the
United States and Canada. GMS’s extensive product offering of
wallboard, suspended 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. Forward-looking statements relating to the acquisition
include, but are not limited to: statements about the benefits of
the acquisition, including anticipated growth of AMES’ business,
certain synergies and future financial and operating results;
potential financing for the acquisition; GMS’ plans, objectives,
expectations, projections and intentions, the expected timing of
completion of the acquisition; and other statements relating to the
transaction that are not historical facts. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20211103006254/en/
Investors: Carey Phelps ir@gms.com 770-723-3369
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