ABC Supply to Purchase L&W Supply from USG Corp.August 29th, 2016 by Editor
ABC Supply Co. Inc. and USG Corporation announced that they have entered into an agreement in which ABC Supply will acquire USG’s building product distribution business, L&W Supply Corporation, for total cash consideration of $670 million. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed before the end of 2016.
“We are thrilled to welcome the associates, customers, and suppliers of L&W Supply into the ABC family,” said Keith Rozolis, ABC Supply’s president and CEO. “As a world-class distributor of interior building materials, L&W reinforces ABC’s leadership position in building materials distribution, and helps set the stage for our next phase of growth”.
“The sale of L&W Supply is transformative for USG Corporation, enabling us to right-size our balance sheet and accelerate profitable growth,” said James S. Metcalf, chairperson, president and CEO of USG Corporation. “This transaction sharpens our focus on manufacturing and innovation and creates a new strategic relationship with ABC Supply.”
L&W Supply is one of the largest distributors of gypsum wallboard and suspended ceiling tiles in the United States, serving its customers from a nationwide footprint of 136 distribution branches. ABC Supply is the nation’s largest wholesale distributor of roofing, siding, windows and gutter materials. The acquisition of L&W Supply will allow it to expand into the interior of the building through the sale of gypsum wallboard and suspended ceiling tiles and grid.