Builders FirstSource Inc. (Nasdaq: BLDR), Dallas, on Wednesday announced that it has agreed to sell its standalone Eastern U.S. Gypsum Distribution Operations to L&W Supply for an undisclosed amount.
L&W will acquire all the assets of the Eastern Gypsum Operations, assume the real estate leases for those operations and hire substantially all of the employees at its locations. ABC Supply acquired Chicago-based L&W Supply in 2016.
Builders FirstSource entered into the gypsum business through the acquisition of Probuild on July 31, 2015. The company’s Eastern Gypsum Operations consist of 21 facilities located throughout the Northeast and Southeast U.S. which generated sales of approximately $160 million in 2020.
This divestiture is aligned with Builders FirstSource’s long-term strategy and focus on pursuing strategic growth initiatives in its core value-added business. The company has been acquisitive of late, most recently spending $450 million to buy a software company.