Gypsum industry news
GMS Inc. acquires Olympia Building Supplies in Florida and Steven Kempf Building Material Company in Pennsylvania02 September 2016
USA: GMS Inc. has announced its acquisition of Olympia Building Supplies, LLC, a leading supplier of wallboard and related construction products including steel studs, joint compound, finishing products, insulation and other specialty products to the South Florida market. Founded in 2008, Olympia has grown rapidly from a single location in Pompano, Florida to the current network of three branch locations located in Pompano, Miami and West Palm Beach. Olympia will continue to operate under its current name, which 'has garnered significant respect and brand recognition among professional contractors in its markets. The entire team will join GMS, including its General Manager, Roger Shingler, an established and respected industry veteran.'
Shingler said, "Combining forces with GMS is the right next step in our growth trajectory. GMS shares our passion for customer service and our commitment to providing high-quality products. We have successfully expanded our business to become a leading specialty distributor in Pompano, Miami and West Palm Beach, Florida. We are excited to further improve our ability to serve new and existing customers with the strong support of GMS' national scale, operational expertise, and strong financial position. Being a part of the GMS family is the perfect fit for us."
Chris Doyle, Vice President of the Southeastern division of GMS, added. "We are very happy to welcome the Olympia team to our company. Olympia is an excellent strategic fit for GMS with its broad product offering and loyal customer base in attractive markets. The acquisition of these three established locations in South Florida provides a very complementary addition to our strong existing positons in Central and Northern Florida. Furthermore, the highly seasoned team is driven by success. We look forward to integrating these assets onto our platform and remain vigilant in our pursuit to further strengthen GMS' leadership positions in the Southeast and nationally for years to come."
GMS Inc has also acquired Steven Kempf Building Material Company (SKBM) headquartered in King of Prussia, Pennsylvania. SKBM is a supplier of drywall, ceilings, steel studs and related construction products in the greater Philadelphia metro area and was founded in 1994. SKBM services large and small projects in the commercial and multi-family residential end markets. With a 132,000 sq ft state-of-the-art facility, it has an operating history of two decades and its entire team will join the company, including its founder and president Steven F. Kempf.
GMS operates a national network of distribution centers across the United States. GMS' extensive product offering of wallboard, suspended ceilings systems, or ceilings, and complementary interior construction products is designed to provide a comprehensive one-stop-shop for our core customer, the interior contractor who installs these products in commercial and residential buildings.
US: The Gypsum Association has been designated a Preferred Provider under the International Code Council (ICC) Preferred Provider Program (PPP). The Gypsum Association already is an American Institute of Architects (AIA) Continuing Education System (CES) Provider.
The ICC PPP provides building code officials and others with education related to codes, standards, and guidelines, as well as building construction materials, products and methods. The Gypsum Association intends to provide online education for its GA-600 Fire Resistance Design Manual, a publication offering fire resistive designs referenced by model building codes.
China: The Ministry of Justice has returned a lawsuit in which thousands of US homeowners say a 'cabinet-level' agency should pay for damage to their homes from alleged defective wallboard made in China. The ministry says it won't serve the legal papers because the agency is immune to such lawsuits and the legal service would infringe upon China's sovereignty.
US District Judge Eldon Fallon has ruled that Taishan Gypsum Company must pay for damages from the wallboard it made. The judge is considering damages for up to 4000 homeowners in six states. The brief letter from Beijing became part of the court record this week, about 21 months after lawyers for the homeowners sued the state-owned Assets Supervision and Administration Commission, which oversees 117 state-owned companies. It was dated 8 April 2016.
Fallon ruled in 2010 that Taishan's wallboard emitted sulphur gas that damaged the homes of seven 'bellwether' plaintiffs from Virginia, making occupants ill, corroding copper, silver and other metals, damaging appliances and electronics, and stinking up the houses so they were "hard if not impossible to live in." The other states involved in the lawsuit include Alabama, Florida, Louisiana, Mississippi and Texas, according to Associated Press.
US: Transnational Group has delayed the start of gypsum mining and production at its property in Sandy Valley, Nevada. It blamed the setback on unforeseen delays by the Bureau of Land Management (BLM) in issuing Transnational's exploration permits due to the agency's lack of resources. It anticipates that it will will be able to obtain the necessary permits to commence exploration at the site within sixty to ninety days, barring any additional requests or delays by the BLM.
"Due to delays imposed by the BLM stemming from its lack of qualified geologists in our area that could not be foreseen by management, the timeline of our Sandy Valley Project has been extended. However, we expect to secure an exploration permit in the near future and anticipate that Transnational will continue its progress towards producing gypsum on this property," stated Transnational Group's CEO, Philip Dutoit.
US: Continental Building Products has elected Ed Bosowski to serve as chairman of the board of directors effective from 18 March 2016. He replaces Brad Boggess. Bosowski has been a member of the board of directors of the company since February 2014, and has over 30 years of experience in the gypsum wallboard industry.
The company also announced that Brad Boggess, Kyle Volluz and Grant Wilbeck resigned from the board of directors on 18 March 2016 following the sale by an affiliate of Lone Star Funds of all remaining shares of stock it held in the company. The three departing board members were affiliated to Lone Star Funds. The board of directors of Continental Building Products currently consists of five independent members and the company's president and CEO.
US: Headwaters Resources has announced it has entered into a definitive agreement to purchase 100% of the membership interests of Synthetic Materials based in Louisville, Kentucky. The acquisition, which is subject to the satisfaction of certain closing conditions, is expected to close in Headwaters current fiscal year. It is intended to complement the coal combustion product management operations of Headwaters.
Synthetic Materials handles synthetic gypsum processing and management. It has 21 years of experience providing services to the flue gas desulfurisation industry, including the design and construction of gypsum dewatering systems, gypsum marketing, landfill and pond management. At present it provides operations and maintenance services at 10 different utility sites and manages over 4Mt/yr of bulk synthetic gypsum, generating approximately US$25m in annual revenue. The expected purchase price will range between US$38 – 45m, depending upon certain conditions.
US: Continental Building Products sales fell slightly to US$422m in 2015 from US$425m in 2014. Despite this its net income rose by 5% to US$16.7m from US$15.9m. Wallboard volumes sales rose by 0.9% to 204Mm2 from 203Mm2.
US: Gypsum Management and Supply (GMS) has acquired Robert N Karpp Company, a drywall supplier based in Boston, Massachusetts. The purchase gives GMS, a North American distributor of gypsum wallboard and suspending ceiling systems, entry into the New England market.
"This addition to our business is a natural fit for GMS as we continue to expand our geographic footprint, while providing our resources as a national brand to help support new and existing local yards," said Mike Anderson, the GMS VP of Operations for the Northeast region.
US: Transnational Group has appointed Israel Gamliel as the company's Chief Operating Officer (COO). The firm is a mineral and natural resource exploration company focused on acquiring and mining mineral-rich assets, including high-grade gypsum, in the Southwestern US.
"Transnational Group is very pleased to welcome Israel Gamliel as our new COO. He has demonstrated an ability to lead companies through periods of significant revenue growth in a short time frame through the optimum management of people, products, raw materials and financial resources," said the Company's CEO, Philip Dutoit.
Gamliel has several years of experience serving as the CEO, president and owner of multiple companies in diverse markets including construction, real estate and the garment industry.
US: Steve Rowley will retire as president and CEO of Eagle Materials on 31 March 2016. Dave Powers, Executive Vice President for Gypsum Wallboard at Eagle since 2005, will succeed Rowley as President and CEO. He will also be appointed to the Board of Directors.
"Steve has positioned Eagle for an exciting future. He has led the doubling of the scale of our cement business and has guided the growth of our gypsum wallboard business in achieving its nation-wide scope. He also has successfully led the company through the longest and most challenging construction market down-cycle in US history," said Larry Hirsch, Chairman of the Board. Health reasons were cited for Rowley's retirement.
Dave Powers, aged 65, holds over 35 years of experience in the building materials industry. He joined Eagle Materials (formerly Centex Construction Products) in 2002 as Executive Vice President, Sales and Marketing. In January 2005, he was promoted to his role as Eagle's Executive Vice President for Gypsum (and President, American Gypsum Company LLC).