- GMS (NYSE:GMS) has agreed to acquire AMES Taping Tools Holding, a provider of automatic taping and finishing tools.
- The transaction is expected to close in GMS's fiscal third quarter of 2022 with a purchase price of $212.5M in cash. GMS expects to fund the deal with cash on hand and borrowings under its ABL credit facility.
- Post closing, AMES's current management team, including President and CEO Jay Davisson, will continue to lead the business under the "AMES" brand.
- For the year ended September 30, 2021, AMES achieved net sales of ~$100M. The acquisition will complement to GMS's current offerings, significantly expanding its presence in the attractive tools and fasteners market.
- John Turner, Jr., President and Chief Executive Officer of GMS, stated, "AMES has highly-respected brands and an entrepreneurial culture with an attractive growth plan, which all align well with our strategic priorities and provide an excellent opportunity for GMS to expand our presence in the growing ATF tools market. With its multichannel distribution model and strong customer relationships, AMES is expected to generate accretive EBITDA margins for GMS. We believe this transaction will add immediate benefits as part of one of our strategic growth priorities to diversify our core product offerings, and will further position GMS to drive long-term growth and shareholder value."