USG completed the sale of its building products distribution business, L&W Supply Corp., to ABC Supply Co. Inc. for a total cash consideration of $670 million.
The completion of this previously announced transaction will allow USG to reduce debt and achieve its target leverage ratio, while creating new opportunities to accelerate high-margin growth with advanced manufacturing initiatives in its core Gypsum and Ceilings businesses. The sale will also allow USG to continue its strong relationship with L&W Supply, one of its largest customers, while providing incremental opportunities for growth in the independent specialty dealer channel. It is expected to decrease USG’s overall earnings cyclicality and will position the company to consider future capital returns to shareholders.