GMS Expands in NYC with Kamco Acquisition

New York City is one of the last major markets where GMS did not have a significant presence.

GMS Inc. (Gypsum Management & Supply), the building materials distribution powerhouse, announced that it is acquiring Kamco Supply Corporation along with its affiliates.

According to GMS President and CEO John Turner, Jr., the acquisition of Kamco provides an opportunity to “advance GMS’s strategic priorities, including expanding share in its core product categories and continuing to develop our presence in the New York.”

Prior to the move, the New York market was “the largest remaining remaining MSA where we do not have a significant presence,” Turner noted.

Kamco operates five distribution facilities in the greater New York City market and tri-state region. Founded in 1939 by the Swerdlick family, and headquartered in Brooklyn, New York, Kamco is a supplier of ceilings, wallboard, steel, lumber, and other related construction products. 

For the 12 months ended June 30, 2023, Kamco recorded revenues of approximately $245 million.

“Kamco is a long-established leader in the building materials industry with an experienced and successful team,” said  Turner, Jr. “They are known for exceptional service and have outstanding customer relationships and an impressive suite of products from numerous leading brands, including Armstrong, CertainTeed, National Gypsum, USG, Owens Corning, and others.”

Founded in 1971 and based in Tucker, Georgia, GMS operates a network of over 300 distribution centers that offer wallboard, ceilings, steel framing. and complementary building products. In addition, GMS operates more than 100 tool sales, rental, and service centers.

“We share GMS’s vision of building long-term relationships and providing best-in-class customer service to our customers,” said Scott Little, president of Kamco. “As such, we believe that partnering with an industry leader whose values are well aligned with our own presents excellent opportunities for our employees and customers alike, and we look forward to driving continued success as part of GMS.”

GMS said that it expects to fund this transaction with cash on hand and borrowings under the company’s established revolving credit facility.

The deal is expected to close during the fourth quarter of GMS Inc.’s fiscal year 2024, which ends on April 30.

Little and Kamco’s senior leadership team, will continue to lead the business and the company will continue to operate under the Kamco brand. A list of the GMS portfolio of companies can be found here.

The financial terms of the acquisition were not disclosed.

GMS said it expects to capitalize on cross-selling opportunities with Kamco and GMS’s other operations in the region, including the recently acquired Tanner Bolt and Nut, Inc. business. 

On Dec. 7, GMS reported second quarter 2024 sales dipped by 0.7% to $1.42 billion compared to sales of $1.43 billion for the same period in the prior year. Net earnings for the quarter. GMS noted that steel framing materials deflation impacted sales by $85 million in the second quarter.

About GMS

Founded in 1971, GMS operates a network of over 300 distribution centers with extensive product offerings of Wallboard, Ceilings, Steel Framing and Complementary Products. In addition, GMS operates more than 100 tool sales, rental and service centers, providing a comprehensive selection of building products and solutions for its residential and commercial contractor customer base across the United States and Canada. The Company’s unique operating model combines the benefits of a national platform and strategy with a local go-to-market focus, enabling GMS to generate significant economies of scale while maintaining high levels of customer service.

For more information about GMS, please visit www.gms.com.

Contact:

Carey Phelps – Vice President, Investor Relations – ir@gms.com – (770) 723-3369

Source: Gypsum Management and Supply, Inc.