TUCKER, Ga.--(BUSINESS WIRE)--GMS Inc. (NYSE: GMS), a leading North American specialty building products distributor, today provided an update on the continued execution of its platform expansion strategy with its first entries in the New York City market. These include the acquisition of Tanner Bolt and Nut, Inc. and the opening of a ceilings-focused greenfield location. In addition, the Company provided details on other recent openings of greenfield yards and AMES store locations.
“We are excited to announce our first entries in the New York City market with the acquisition of Tanner Bolt and Nut, Inc. and the expansion of our relationship with USG to supply ceiling products from a new greenfield location in Brooklyn,” said John C. Turner, Jr., President and Chief Executive Officer. “We are pleased to take this first step into such a significant market. With Tanner’s focus on tools and fasteners, these additions, along with the establishment of several new greenfield yard locations and AMES stores over the last several months represent our continued commitment to the execution of our strategic priorities of platform expansion and Complementary Product growth.”
Tanner Bolt and Nut, Inc. (“Tanner”); Acquired December 30, 2022
Founded in 1979, Tanner Bolt and Nut, Inc., based in Brooklyn, NY, is a leading distributor of fasteners, tools, safety and related construction products to the broader New York City market. The acquisition of Tanner’s four metro area locations establishes GMS’s inaugural positioning with Complementary Product offerings in the New York Metro area.
Building on a 40+ year legacy in the market, President Jeffrey Tannenbaum and the Tanner team will continue to lead the business, under the Tanner brand name. Tanner will partner with the legacy GMS operations of Capitol Building Supply, Inc., a leader in specialty building products distribution in the Northeast, to serve customers across the region.
Greenfield Location Openings
GMS also established three new greenfield locations since its last platform expansion press release. The activities expand the Company’s presence, provide enhanced service and broaden the product offerings in their respective markets:
- Opened earlier this week, in New York, NY, GMS established a dedicated facility focused on the growth of acoustical ceilings business into the New York City metro area, expanding upon its existing USG relationship in other Northeast markets.
- In Greenville, NC, GMS added to its Colonial Materials, Inc. operations with a location servicing the broader Greenville market.
- In Chester, VA, GMS added its eighth location to the Commonwealth Building Materials platform, enhancing coverage of the Richmond, VA market.
To date, GMS has added six new greenfield locations since the start of fiscal 2023.
AMES Platform Expansion
Following its acquisition by GMS in December 2021, the AMES platform continues to execute against its growth strategy by adding three new AMES® store locations in Fresno, CA, Palm Bay, FL, and Concord, NC, enhancing its market coverage in these geographies. The opening of the Fresno, CA location represents the 100th store opening for AMES. To date, GMS has added nine AMES store locations during fiscal 2023.
With a substantial liquidity position, including $124 million in cash on hand as of the end of our most recently ended quarter, the near-term expectation of strong free cash flow generation and the Company’s newly expanded ABL Credit Agreement with increased capacity and an extended maturity, GMS remains well-positioned to continue to advance its strategic priorities.
About GMS:
Founded in 1971, GMS operates a network of approximately 300 distribution centers with extensive product offerings of Wallboard, Ceilings, Steel Framing and Complementary Products. In addition, GMS operates approximately 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. 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.
