Builders FirstSource Divests Eastern U.S. Gypsum Distribution Operations
DALLAS, July 07, 2021 (GLOBE NEWSWIRE) -- Builders FirstSource, Inc. (Nasdaq: BLDR) (“Builders FirstSource”), today announced that it has entered into a definitive agreement to sell the assets of its standalone Eastern U.S. Gypsum Distribution Operations (“Eastern Gypsum Operations”) to L&W Supply (“L&W”). L&W will acquire all 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. ABC Supply acquired Chicago-based L&W Supply in 2016.
Builders FirstSource entered into the gypsum business through the acquisition of Probuild on July 31, 2015. The Company’s Eastern Gypsum Operations consist of 21 facilities located throughout the Northeast and Southeast U.S. which generated sales of approximately $160 million in 2020. This divestiture is aligned with Builders FirstSource’s long-term strategy and focus on pursuing strategic growth initiatives in its core value-added business. L&W will provide the employees and customers of the Eastern Gypsum Operations with a reliable partner in the space that can provide both employment opportunities and high-quality service.
The sales price of the transaction was not disclosed. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2021.
Rothschild & Co is serving as financial advisor to Builders FirstSource, and Alston & Bird LLP is serving as its legal counsel.
About Builders FirstSource
Headquartered in Dallas, Texas, Builders FirstSource is the largest U.S. supplier of building products, prefabricated components and value-added services to the professional market segment for new residential construction and repair and remodeling. We provide customers an integrated homebuilding solution, offering manufacturing, supply, delivery and installation of a full range of structural and related building products. We operate in 40 states with approximately 550 locations and service customers in 48 of the top 50 Metropolitan Statistical Areas, providing geographic diversity and balanced end market exposure. We service customers from strategically located distribution and manufacturing facilities (certain of which are co-located) that produce value-added products such as roof and floor trusses, wall panels, stairs, vinyl windows, custom millwork and pre-hung doors. Builders FirstSource also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other building products. For more information about Builders FirstSource, visit the Company’s website at www.bldr.com.
Statements in this news release and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, synergies, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this release, these forward-looking statements are by nature inherently uncertain, and actual results may differ materially as a result of many factors. All forward-looking statements are based upon information available to Builders FirstSource, Inc. on the date this release was submitted. Builders FirstSource, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to the recent novel coronavirus disease 2019 (also known as “COVID-19”) pandemic, the Company’s merger with BMC, the Company’s growth strategies, including gaining market share, or the Company’s revenues and operating results being highly dependent on, among other things, the homebuilding industry, lumber prices and the economy. Builders FirstSource, Inc. may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource, Inc.’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) and in the other reports filed by the Company with the SEC. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.
SVP, Investor Relations
Builders FirstSource, Inc.