GMS Completes Acquisition of WSB Titan
GMS Inc. announced the successful completion of its previously announced acquisition of WSB Titan (“Titan”), the largest wallboard distributor in Canada.
The completion of this acquisition further strengthens GMS's position as one of the largest wallboard distributors in North America, with combined revenues of approximately $3 billion and more than 240 branches throughout 42 states and 5 provinces in Canada.
Mike Callahan, president & CEO of GMS, stated, "We are pleased to announce the completion of the acquisition of Titan and we look forward to working with the Titan team to integrate the leading distributors of wallboard and interior building products in the U.S. and Canada. This combination of two market leaders extends GMS’s leadership position as the largest wallboard distributor in North America with significant scale advantages and a well-balanced portfolio built for growth. I also want to thank the GMS and Titan teams for all of the hard work to complete this process. This is an exciting day for our shareholders, customers, suppliers and employees."
In connection with the completion of the acquisition, GMS, through its wholly-owned subsidiary, GYP Holdings III Corp., refinanced its existing $572 million term loan facility with a $997 million term loan facility due 2025. Borrowings under the new term loan will bear interest at a floating rate based on LIBOR plus 2.75 percent, representing a twenty-five basis points improvement compared to the previous term loan’s interest rate. GMS remains focused on maintaining a prudent capital structure and a strong financial position with sufficient flexibility to fund ongoing business operations and acquisitions.
Titan will operate as a subsidiary of GMS going forward and will continue to be led by Doug Skrepnek, president of GMS Canada, and its existing management team.