TUCKER, Ga. — GMS Inc., a leading North American specialty building products distributor, announced the successful completion of its previously disclosed acquisition of Kamco Supply Corporation, a leading supplier of ceilings, wallboard, steel, lumber and other complementary construction products in the New York City metropolitan area.
“As we highlighted during our fiscal third quarter 2024 earnings report, we are pleased to complete this meaningful expansion into the New York City market and to welcome the Kamco team to GMS,” said John C. Turner Jr., president and chief executive officer of GMS. “Aligned with the values of GMS, the Kamco team of respected professionals has a long tradition of providing outstanding customer service while offering a robust suite of products. Bringing Kamco into the GMS family of brands expands our share in our core products and provides geographic expansion in the highly-attractive New York City market, advancing two of our key strategic priorities.”
For the 12 months ended Dec. 31, 2023, Kamco generated approximately $235 million in annual revenue from its four established distribution facilities and its recently opened Bronx greenfield. GMS believes this Bronx location will meaningfully add to Kamco’s top-line growth as its operations mature.
Expanded wallboard distribution and geographic footprint expansion present compelling opportunities for the combined company to better capitalize on available growth in the market and provide an even higher level of service to customers. In addition, progressively over the next three years and going forward, GMS expects this transaction to generate both cost and revenue synergies through the integration of its distribution network and purchasing programs, cross-selling opportunities, complementary product additions to Kamco’s offerings and SG&A savings.
GMS funded the $321.5 million purchase price with cash on hand and available borrowings on its revolving credit facility.
