Gypsum Management & Supply (GMS), a specialty distributor of interior building products, entered a definitive agreement to acquire AMES Taping Tools Holdings. AMES is a provider of automatic taping and finishing (ATF) tools and related products to the professional drywall finishing industry. The deal is expected to close in GMS’s fiscal third quarter of 2022 with a purchase price of $212.5 million in cash.
“We are pleased to welcome the AMES team to GMS and provide a full suite of offerings for interior contractors and drywall finishers,” John Turner, president and CEO of GMS, said in a news release. “AMES has a highly-respected brands and an entrepreneurial culture with an attractive growth plan, which all align well with our strategic priorities in the growing ATF tools market.”
Turner said AMES is expected to generate accretive EBITDA margins for GMS and add immediate benefits as one of the company’s strategic growth priorities.
AMES provides a distinctive complement to GMS’s current offerings, significantly expanding the company’s presence in the attractive tools and fasteners market. AMES’s portfolio includes the TapeTech finishing tool brand and the All-Wall specialty interior finishing e-commerce platform. AMES achieved net sales of approximately $100 million for the twelve months ended September 30, 2021.
“We are excited about the opportunity to join the GMS team,” Jay Davisson, president and CEO of AMES, said. “Like GMS, customer service has been a cornerstone of the AMES business since our founding over 80 years ago. Building on our strong, existing relationships, we are excited to bring our customer-first culture and deep industry matter expertise to GMS to create a best-in-class product and service experience for our customers and growth opportunities for employees.”
AMES services customers through its multichannel distribution model, including AMES stores, dealer distribution, and the All-Wall e-commerce platform.
Following the closing of the transaction, AMES’s current management team, including president and CEO Jay Davisson, will continue to lead the business under the AMES brand name.
GMS said it expects to leverage its existing relationship with AMES and the sourcing arrangements with its subsidiary Tool Source Warehouse to expand and enhance AMES’s distribution model and better capitalize on available growth opportunities.
Tucker, Ga.-based GMS operates a network of more than 280 distribution centers across 46 U.S. states and six Canadian provinces, offering wallboard, suspended ceiling systems, and complementary construction products.
