Builders FirstSource (BFS) entered a definitive agreement to sell the assets of its standalone Eastern U.S. Gypsum Distribution Operations to L&W Supply, a specialty distributor for drywall, ceilings, steel framing, and other building materials.
L&W Supply will acquire the assets of the Eastern Gypsum Operations, assume the real estate leases for those operations, and hire substantially all of the employees at its locations, according to a news release. The acquired assets will operate as L&W Supply. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2021.
BFS entered the gypsum business through its acquisition of Probuild in the summer of 2015. The Eastern Gypsum Operations consist of 21 facilities located throughout the northeast and southeast. The business generated approximately $160 million in 2020, according to BFS.
With the purchase, L&W Supply will add 12 new distribution branches and acquire the gypsum operations assets and personnel from an additional nine shared BFS locations, which will move to an existing nearby L&W Supply yard, according to the distributor. Chicago-based L&W Supply, a unit of ABC Supply, will now operate 197 locations in 38 states.
“This acquisition creates additional synergies across our value chain and branch operations, and it further reinforces our leadership position in the interior building material distribution market,” Dan Piché, L&W Supply president, said in a prepared statement. “We look forward to welcoming the Eastern Gypsum Operations team into the L&W family and are confident our shared commitment to delivering world-class service will benefit customers and associates alike.”
BFS said the divestiture is aligned with the company’s long-term strategy and focus on “pursuing strategic growth initiatives in its core value-added business.” The dealer recently acquired WTS Paradigm, a software solutions and service provider for the building products industry.
Dallas-based BFS operates in 40 states with approximately 550 locations and has a market presence in 47 of the top 50 and 86 of the top 100 MSAs. The company provides value-added products such as roof and floor trusses, wall panels, stairs, vinyl windows, custom millwork and pre-hung doors. BFS also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other building products. The dealer has expanded recently through its mega-merger with BMC Holdings and its acquisitions of Michigan-based John’s Lumber and Arizona-based Cornerstone Building Alliance.
