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GMS Inc. (NYSE:GMS) today announced that it has agreed to acquire Kamco Supply Corporation and its affiliates. The terms of the deal were not disclosed.
Founded in 1939 by the Swerdlick family and headquartered in Brooklyn, New York, Kamco has grown into a key player in the building materials industry. With revenue of around $245 million for the 12 months ended June 30, 2023, the company operates five distribution facilities in the Greater New York City area and services the New York metro and tri-state area.
This acquisition, anticipated to be finalized in the fourth quarter of GMS's fiscal year 2024, which concludes on April 30, 2024, marks a significant expansion for GMS, particularly in the New York metropolitan area.
John C. Turner, Jr., President and CEO of GMS, commented, "We expect the addition of this business to GMS to provide enhanced customer service capability, significant cross-selling opportunities, a strengthened value proposition and a broader suite of top tier-product offerings in the largest metropolitan area in the United States."
Post-acquisition, Kamco's current President, Scott Little, and its senior leadership team will maintain their roles. The company will continue operating under the Kamco brand.
As of October 31, 2023, GMS held $76.52 million in cash and equivalents.
GMS intends to finance this acquisition through its cash reserves complemented by loans from its current credit lines. The merger of Kamco into GMS's operations, particularly through capitalizing on cross-selling prospects and broadening product offerings, is anticipated to significantly boost market growth and improve the quality of customer service.
Price Action: GMS shares traded higher by 0.81% at $82.27 on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was Reviewed And Published By Benzinga Editors.
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