ABC Supply To Acquire L&W Supply From USG For $670 Mln

(RTTNews) - ABC Supply Co. Inc. and USG Corp. (USG) announced that they have entered into a definitive agreement in which ABC Supply will acquire USG's building product distribution business, L&W Supply Corporation, for total cash consideration of $670 million. The Transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed before the end of 2016.

Completion of the Transaction will allow USG to reduce debt and achieve its target leverage ratio, accelerate high return investments in its Gypsum and Ceilings businesses through advanced manufacturing initiatives, and position the company to consider future capital returns to shareholders.

The sale of L&W Supply is also expected to dampen USG's overall earnings cyclicality as well as provide opportunity for growth in the independent specialty dealer channel.