The underwriters for this offering are Credit Suisse, Barclays, RBC, Baird, Wells Fargo, and SunTrust Robinson Humphrey.
The company is a leading North American distributor of wallboard, suspended ceilings systems and complementary interior construction products. Its core customer is the interior contractor, who installs wallboard, suspended ceilings systems, or ceilings, and other interior construction products in commercial and residential buildings.
Since its founding in 1971, GMS has grown its business from a single location to over 155 branches across 36 states through a combination of both organic growth and acquisitions. According to the company, what underpins that growth is its entrepreneurial culture, which both enables it to drive organic growth by delivering outstanding customer service and makes GMS an attractive acquirer for smaller distributors whose owners are seeking liquidity. Over time, the company increased its North American market share in the distribution of wallboard and ceilings, which management currently estimates is 11% and 14%, respectively.
In the filing the company described its finances:
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.
GMS expects to use the proceeds from this offering for general corporate purposes as well as paying down its indebtedness.
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