USG Corporation to Expand Ceilings Portfolio with Acquisition of Ceilings Plus
November 14 2017 - 7:30AM
Business Wire
Transaction will accelerate the company’s
offerings in the high-growth Specialty Ceilings market
USG Corporation (NYSE:USG) today announced that it has entered
into a definitive agreement to acquire Ceilings Plus, a leading
manufacturer of specialty ceilings products. Upon closing, USG will
pay approximately $52 million in cash, on a cash-free and debt-free
basis.
The pending transaction, which is subject to customary closing
conditions, is expected to close by the end of 2017.
“The addition of Ceilings Plus is expected to further expand
USG’s product portfolio, accelerate innovation and enhance our
presence in the high-growth Specialty Ceilings market,” said
Jennifer Scanlon, president and CEO of USG Corporation. “I believe
this acquisition will increase our penetration into architectural
specifications and enable cross-selling opportunities for USG’s
existing tile and grid ceiling products.”
Ceilings Plus employs more than 150 people at two facilities in
California and Georgia. Ceilings Plus is expected to generate 2017
sales in excess of $45 million. Founder and president Nancy
Mercolino will continue to lead the business and be based in Los
Angeles.
“Our decision to join the USG family positions Ceilings Plus for
the next phase of our ongoing evolution by providing access to
additional manufacturing capabilities, greater sales coverage and a
highly complementary portfolio of Ceiling products,” said Ms.
Mercolino.
Slides relating to the acquisition are now available at
www.usg.com in the investor relations section.
About USG Corporation
USG Corporation is an industry-leading manufacturer of building
products and innovative solutions. Headquartered in Chicago,
USG serves construction markets around the world through its United
States Gypsum Company and USG Interiors, LLC subsidiaries and its
international subsidiaries, including its USG Boral Building
Products joint venture. Its wall, ceiling, flooring, sheathing and
roofing products provide the solutions that enable customers to
build the outstanding spaces where people live, work and play. Its
USG Boral Building Products joint venture is a leading plasterboard
and ceilings producer across Asia, Australasia and
the Middle East. For additional information,
visit www.usg.com.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
related to management’s expectations about future conditions,
including but not limited to, the expected closing date of the
transaction and the effect of the transaction on USG and its
financial results. Actual business, market or other conditions may
differ materially from management’s expectations and, accordingly,
may affect our sales and profitability or other results and
liquidity. Any forward-looking statements represent our views only
as of today and should not be relied upon as representing our views
as of any subsequent date. Actual results may differ materially due
to various other factors, including: the satisfaction of the
conditions to closing and Ceilings Plus and USG having the ability
to consummate the transaction. We assume no obligation to update
any forward-looking information contained in this press release.
Additional information concerning these and other risks and
uncertainties affecting USG may be found in our filings with the
Securities and Exchange Commission, including the “Risk Factors” in
our most recent Annual Report on Form 10-K
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version on businesswire.com: http://www.businesswire.com/news/home/20171114005668/en/
USG CorporationMediaKathleen Prause,
312-436-6607kprause@usg.comorInvestorsWilliam Madsen,
312-436-5349Investorrelations@usg.com
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