GMS Prepares For IPO

By Chris Lange Updated Apr 27, 10:18PM EDT · Published Sep 1, 3:08PM EDT

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GMS Inc. filed an amended S-1 form with the Securities and Exchange Commission (SEC) for its initial public offering (IPO). There were no terms given in the filing but the offering is valued up to $200 million. The company has yet to decide what exchange it will list on but it plans to list under the symbol GMS.

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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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.