GMS Acquires Tanner Bolt and Nut

The deal marks the distributor's debut in the New York City market.

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TUCKER, Ga. -- GMS Inc., a leading North American specialty building products distributor, provided an update on the continued execution of its platform expansion strategy with its first entries in the New York City market.

These include the acquisition of Tanner Bolt and Nut Inc. and the opening of a ceilings-focused greenfield location. In addition, the company provided details on other recent openings of greenfield yards and AMES store locations.

“We are excited to announce our first entries in the New York City market with the acquisition of Tanner Bolt and Nut Inc. and the expansion of our relationship with USG to supply ceiling products from a new greenfield location in Brooklyn,” said John C. Turner, Jr., president and CEO. “We are pleased to take this first step into such a significant market. With Tanner’s focus on tools and fasteners, these additions, along with the establishment of several new greenfield yard locations and AMES stores over the last several months represent our continued commitment to the execution of our strategic priorities of platform expansion and complementary product growth.”

Tanner Bolt and Nut Inc. Acquired Dec. 30

Founded in 1979, Tanner Bolt and Nut Inc., based in Brooklyn, is a leading distributor of fasteners, tools, safety and related construction products to the broader New York City market. The acquisition of Tanner’s four metro area locations establishes GMS’ inaugural positioning with complementary product offerings in the New York Metro area.

Building on a 40+ year legacy in the market, President Jeffrey Tannenbaum and the Tanner team will continue to lead the business under the Tanner brand name. Tanner will partner with the legacy GMS operations of Capitol Building Supply Inc., a leader in specialty building products distribution in the Northeast, to serve customers across the region.

Greenfield Location Openings

GMS also established three new greenfield locations since its last platform expansion press release. The activities expand the company’s presence, provide enhanced service and broaden the product offerings in their respective markets:

Opened earlier this week, in New York, GMS established a dedicated facility focused on the growth of acoustical ceilings business into the New York City metro area, expanding upon its existing USG relationship in other Northeast markets.

In Greenville, North Carolina, GMS added to its Colonial Materials Inc. operations with a location servicing the broader Greenville market.

In Chester, Virginia, GMS added its eighth location to the Commonwealth Building Materials platform, enhancing coverage of the Richmond market.

To date, GMS has added six new greenfield locations since the start of fiscal 2023.

AMES Platform Expansion

Following its acquisition by GMS in December 2021, the AMES platform continues to execute against its growth strategy by adding three new AMES store locations in Fresno, California, Palm Bay, Florida, and Concord, North Carolina, enhancing its market coverage in these geographies. The opening of the Fresno location represents the 100th store opening for AMES. To date, GMS has added nine AMES store locations during fiscal 2023.

With a substantial liquidity position, including $124 million in cash on hand as of the end of our most recently ended quarter, the near-term expectation of strong free cash flow generation and the company’s newly expanded ABL Credit Agreement with increased capacity and an extended maturity, GMS remains well-positioned to continue to advance its strategic priorities.

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