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 Yvon Building Supply Inc. together with its affiliates, Yvon Insulation Corporation, Yvon Insulation Windsor, Laminated Glass Technologies, Inc., and Right Fit Foam Insulation Ltd. (collectively “Yvon”), a leading distributor of building supplies in the Ontario, Canada market.
“As we highlighted during our recent earnings conference call for the fourth quarter and full year fiscal 2024, we are pleased to enhance our service and product offerings in the Greater Toronto market with the successful completion of this transaction,” said John C. Turner, Jr., President and Chief Executive Officer of GMS. “We are excited to welcome the Yvon team to GMS Canada and look forward to expanding our Core and Complementary Products in southern Ontario.”
With seven locations across Ontario, Yvon provides high-quality building supplies including drywall, insulation, steel, ceilings and other complementary products and related services throughout Greater Toronto and Ontario. For the twelve months ended May 31, 2024, Yvon generated net revenues of approximately CAD$195 million.
This transaction, which is expected to be slightly margin-accretive to the broader GMS business, was funded with cash on hand and from borrowings on the Company’s revolving credit facility. With more than a quarter of the CAD$196.5 million purchase price scheduled to be paid over the next five years, the transaction value is consistent with GMS’s track record of acquiring at or below the Company’s market multiple.
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.
