CHICAGO--(BUSINESS WIRE)--USG Corporation (NYSE:USG) today announced that it has entered into a definitive agreement to acquire Ceilings Plus, a leading manufacturer of specialty ceilings products. Upon closing, USG will pay approximately $52 million in cash, on a cash-free and debt-free basis.
The pending transaction, which is subject to customary closing conditions, is expected to close by the end of 2017.
“The addition of Ceilings Plus is expected to further expand USG’s product portfolio, accelerate innovation and enhance our presence in the high-growth Specialty Ceilings market,” said Jennifer Scanlon, president and CEO of USG Corporation. “I believe this acquisition will increase our penetration into architectural specifications and enable cross-selling opportunities for USG’s existing tile and grid ceiling products.”
Ceilings Plus employs more than 150 people at two facilities in California and Georgia. Ceilings Plus is expected to generate 2017 sales in excess of $45 million. Founder and president Nancy Mercolino will continue to lead the business and be based in Los Angeles.
“Our decision to join the USG family positions Ceilings Plus for the next phase of our ongoing evolution by providing access to additional manufacturing capabilities, greater sales coverage and a highly complementary portfolio of Ceiling products,” said Ms. Mercolino.
Slides relating to the acquisition are now available at www.usg.com in the investor relations section.
About USG Corporation
USG Corporation is an industry-leading manufacturer of building products and innovative solutions. Headquartered in Chicago, USG serves construction markets around the world through its United States Gypsum Company and USG Interiors, LLC subsidiaries and its international subsidiaries, including its USG Boral Building Products joint venture. Its wall, ceiling, flooring, sheathing and roofing products provide the solutions that enable customers to build the outstanding spaces where people live, work and play. Its USG Boral Building Products joint venture is a leading plasterboard and ceilings producer across Asia, Australasia and the Middle East. For additional information, visit www.usg.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 related to management’s expectations about future conditions, including but not limited to, the expected closing date of the transaction and the effect of the transaction on USG and its financial results. Actual business, market or other conditions may differ materially from management’s expectations and, accordingly, may affect our sales and profitability or other results and liquidity. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Actual results may differ materially due to various other factors, including: the satisfaction of the conditions to closing and Ceilings Plus and USG having the ability to consummate the transaction. We assume no obligation to update any forward-looking information contained in this press release. Additional information concerning these and other risks and uncertainties affecting USG may be found in our filings with the Securities and Exchange Commission, including the “Risk Factors” in our most recent Annual Report on Form 10-K