April 5, 2018 / 10:41 AM / 4 months ago

BRIEF-GMS To Acquire WSB Titan For About $627 Million

April 5 (Reuters) - GMS Inc:

* GMS TO ACQUIRE WSB TITAN, THE LARGEST WALLBOARD DISTRIBUTOR IN CANADA

* DEAL FOR APPROXIMATELY $627 MILLION

* ‍EXPECT TO REALIZE AT LEAST $10 MILLION IN COST SYNERGIES WITHIN FIRST FULL YEAR FOLLOWING CLOSE OF TRANSACTION​

* COMMITTED DEBT FINANCING FOR TRANSACTION

* DEAL EXPECTED TO BE IMMEDIATELY ACCRETIVE TO ADJUSTED EARNINGS PER SHARE AND ADJUSTED EBITDA MARGIN

* ‍MIKE CALLAHAN WILL CONTINUE TO SERVE AS PRESIDENT AND CEO OF COMBINED COMPANY, WHICH WILL REMAIN HEADQUARTERED IN TUCKER, GEORGIA​

* ‍DOUG SKREPNEK WILL BECOME PRESIDENT OF GMS CANADA​

* UNDER DEAL, EXISTING TITAN MANAGEMENT WILL ROLL OVER $35 MILLION OF THEIR CURRENT OWNERSHIP POSITION INTO GMS STOCK

* WILL ACQUIRE TITAN FROM TITAN’S CURRENT MANAGEMENT AND TORQUEST PARTNERS Source text for Eikon: Further company coverage:

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