Gypsum Management and Supply, the ProSales Top 10-worthy specialty dealer that has taken steps to go public, filled two big holes in its national footprint Jan. 13 with its acquisition of Gypsum Supply Co., an eight-unit dealer with operations in Michigan and Ohio.
Gypsum Supply sells drywall, ceilings, steel and insulation and also installs insulation. It has branches in the Michigan cities of Grand Rapids, Kalamazoo, Traverse City, Ann Arbor, Lansing, and Zeeland, as well as in Troy and Toledo, Ohio. Until this deal, GMS didn't have a yard in either state (see map).
"The acquisition positions us to capitalize on markets throughout Michigan and Northwest Ohio," Mike Callahan, president and CEO of GMS, said in a statement. "We plan to leverage the long-term relationships and reputation that Gypsum Supply Co. has built to enhance our presence in this strategic market. We believe that the company and its employees are a natural partner for our growing company as their culture and dedication to excellence mirrors our own mission.”
In April 2014, the private equity firm bought a majority stake in Tucker, Ga.-based GMS. Fifteen months later, in July 15, GMS quietly filed documents with the SEC in advance of a potential Initial Public Offering (IPO) to take the company public. So far, no action has been taken by GMS to act on the IPO.
In those filings, GMS said it had “generated $1.6 billion in net sales, $113.9 million of adjusted EBITDA and $13.8 million of net loss” in the fiscal year that ended in April 2015. That easily would put GMS into the top 10 of the ProSales 100. Nearly 46% of its net sales were for wallboard products.
GMS units, which operate under a variety of names nationwide, now control 171 branches from coast to coast, the company said.