GMS Completes the Acquisition of Kamco Supply Corporation

TUCKER, Ga.--(BUSINESS WIRE)--GMS Inc. (NYSE: GMS), a leading North American specialty building products distributor, today announced the successful completion of its previously disclosed acquisition of Kamco Supply Corporation (“Kamco”), a leading supplier of ceilings, wallboard, steel, lumber and other complementary construction products in the New York City metropolitan area.

“As we highlighted during our fiscal third quarter 2024 earnings report, we are pleased to complete this meaningful expansion into the New York City market and to welcome the Kamco team to GMS,” said John C. Turner, Jr., President and Chief Executive Officer of GMS. “Aligned with the values of GMS, the Kamco team of respected professionals has a long tradition of providing outstanding customer service while offering a robust suite of products. Bringing Kamco into the GMS family of brands expands our share in our core products and provides geographic expansion in the highly-attractive New York City market, advancing two of our key strategic priorities.”

For the twelve months ended December 31, 2023, Kamco generated approximately $235 million in annual revenue from its four established distribution facilities and its recently opened Bronx greenfield. GMS believes this Bronx location will meaningfully add to Kamco’s top-line growth as its operations mature. Expanded wallboard distribution and geographic footprint expansion present compelling opportunities for the combined company to better capitalize on available growth in the market and provide an even higher level of service to customers. In addition, progressively over the next three years and going forward, GMS expects this transaction to generate both cost and revenue synergies through the integration of its distribution network and purchasing programs, cross-selling opportunities, complementary product additions to Kamco’s offerings and SG&A savings. GMS funded the $321.5 million purchase price with cash on hand and available borrowings on its revolving credit facility.

About GMS

Founded in 1971, GMS operates a network of over 300 distribution centers with extensive product offerings of Wallboard, Ceilings, Steel Framing and Complementary Products. In addition, GMS operates more than 100 tool sales, rental and service centers, providing a comprehensive selection of building products and solutions for its residential and commercial contractor customer base across the United States and Canada. The Company’s unique operating model combines the benefits of a national platform and strategy with a local go-to-market focus, enabling GMS to generate significant economies of scale while maintaining high levels of customer service.

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. The following important factors could cause the future results, to differ: the company’s growth strategy, changes in economic or industry conditions, competition, inflation and deflation, input costs, timing and integration of acquisitions, timing and implementation of price increases for the Company’s products, consumer markets, and other factors identified 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.