ABC Supply said it has entered an agreement with USG Corp. to buy L&W Supply for $670 million in cash and is expected to close before the end of 2016. Selling off L&W Supply is expected to help USG reduce debt and reach its target leverage ratio, reported MarketWatch.
For ABC Supply, one of the country's largest wholesale distributor of roofing, siding, windows and gutters, the acquisition expands its business and offers the ability to provide materials on the interior of buildings, as well. L&W is one of the largest distributors of gypsum wallboard and suspended ceiling tiles. J.P. Morgan Securities and Goldman, Sachs & Co. are serving as financial advisers to USG and RBC Capital Markets and Deutsche Bank are financial advisers for ABC Supply.