The underwriters for this offering are Barclays, Credit Suisse, RBC Capital Markets, Baird, Wells Fargo, SunTrust Robinson Humphrey.
This company is the leading North American distributor of wallboard and suspended ceilings systems. Its product offering of wallboard, suspended ceilings systems, and complementary interior construction products is designed to provide a comprehensive solution for interior contractors who install these products in commercial and residential buildings.
Since GMS’s founding in 1971, it has grown its business from a single location to over 155 branches across 36 states through a combination of both organic growth and acquisitions. Underpinning that growth is its entrepreneurial culture, which both enables the company to drive organic growth by delivering outstanding customer service and makes it an attractive acquirer for smaller distributors whose owners are seeking liquidity.
Over time, GMS increased its market share in the distribution of wallboard and ceilings which management currently estimates is 11% for wallboard based on volume produced in the U.S. and Canada, and 14% for ceilings based on sales dollars in North America.
In terms of its finances the company detailed:
For fiscal 2015, we generated $1.6 billion in net sales, $113.9 million of Adjusted EBITDA and $13.8 million of net loss… Net sales and Adjusted EBITDA grew 16.0% and 30.8%, respectively, in fiscal 2015 as compared to full year 2014. Over the past four years, net sales and Adjusted EBITDA have grown at a compound annual growth rate, or CAGR, of 15.5% and 59.2%, respectively.
The company intends to use the net proceeds from this offering to pay down its indebtedness and for general corporate purposes.
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