Beloit-based ABC Supply Co. plans to acquire a division of Chicago-based USG Corp. for $670 million.
ABC Supply, the largest U.S. wholesale distributor of roofing, siding, windows and gutters, has 10,000 employees at more than 600 locations across the country. In 2015, the privately held company, owned by Diane Hendricks, had about $5.9 billion in sales. It plans to acquire L&W Supply Corp., USG’s building product distribution division, by the end of the year pending regulatory approvals.
L&W Supply is a major distributor of gypsum wallboard, suspended ceiling tiles, steel framing and other building materials for residential and commercial contractors, serving a national customer base through 136 branches. With the acquisition of L&W, ABC Supply would broaden its reach to interior building materials. L&W will operate as a division of ABC, retaining all of its 2,000 employees and its branches.
This is one of ABC’s largest ever acquisitions. It recently integrated Norandex Building Materials Distribution Inc., which it acquired in November. Combined, ABC and L&W will have annual sales of more than $8 billion. The acquisition of L&W adds a strong brand with a loyal customer base through which ABC can reach new commercial customers and strengthen its contractor relationships, an ABC spokesperson said.
“We are thrilled to welcome the associates, customers and suppliers of L&W Supply into the ABC family,” said Keith Rozolis, ABC Supply’s president and chief executive officer. “As a world-class distributor of interior building materials, L&W reinforces ABC’s leadership position in building materials distribution and helps set the stage for our next phase of growth.”
“The sale of L&W Supply is transformative for USG Corp., enabling us to right-size our balance sheet and accelerate profitable growth,” said James Metcalf, chairman, president and CEO of USG Corp. “This transaction sharpens our focus on manufacturing and innovation and creates a new strategic relationship with ABC Supply.”