Gypsum Management & Supply (GMS) entered an agreement to acquire the assets of Anaheim, Calif.-based Westside Building Material, an independent distributor of interior building products, for $135 million in cash. Westside is a supplier of steel framing, wallboard, acoustical ceilings, insulation, and related building products serving commercial and residential markets.
Westside’s distribution network comprises 10 locations, including nine across California (in Anaheim, Hesperia, Oakland, Chatsworth, Fresno, Lancaster, Santa Maria, San Diego, and National City) and one in Las Vegas, Nev. According to GMS, Westside generated net revenues of approximately $200 million for the twelve months ended December 31, 2020.
“The acquisition of Westside reflects the continued execution of our growth strategy and brings together two leading organizations with shared cultures and entrepreneurial values,” John Turner, president and CEO of GMS, said in a news release. “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.”
The Westside purchase follows a string of recent acquisitions and greenfield expansions in the Golden State by GMS. With the addition of Westside’s locations to the GMS footprint, the company has expanded 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. The acquisition also helps GMS create a statewide distribution platform to serve customers throughout California, according to the specialty distributor. The acquisition also marks GMS’s entry into the growing Las Vegas market.
“Partnering with GMS gives us the opportunity to continue delivering on [our] mission on a much larger scale,” Westside CEO Bill Peckham said. “We expect the transaction to create exciting opportunities for our employees, customers, and suppliers alike.”
GMS said Westside’s current management team, including president Dick Peckham and CEO Bill Peckham, will continue to lead the business post acquisition. Westside will continue to operate under the same brand name and will partner with seven existing GMS locations across California operating under the “J&B Materials,” “Hathaway Building Materials,” and “Charles G. Hardy” banners.
Tucker, Ga.-based GMS operates a network of more than 265 distribution centers across the United States and Canada, offering wallboard, suspended ceiling systems, and complementary construction products. Earlier in the year, GMS completed the acquisition of D.L. Building Materials in Ontario, Canada, and opened five greenfield locations in four states.
