L&W Supply, USG's distribution business, is a distributor of drywall, ceiling tiles, steel framing and other building materials used by commercial and residential contractors.
ABC Supply is No. 2 on MDM's Top 10 Building Materials & Construction Distributors list (dropping from the top position behind Builders FirstSource, after reporting sales of $5.9 billion in 2015. L&W, tied for No. 10 on the list, reported sales of $1.4 billion in 2015.
“As a world-class distributor of interior building materials, L&W reinforces ABC’s leadership position in building materials distribution and helps set the stage for our next phase of growth,” said Keith Rozolis, ABC Supply’s president and CEO.
"The sale of L&W Supply is transformative for USG Corporation, enabling us to right-size our balance sheet and accelerate profitable growth,” said James S. Metcalf, president and CEO of USG Corp. “This transaction sharpens our focus on manufacturing and innovation and creates a new strategic relationship with ABC Supply.”
ABC Supply will now operate more than 700 locations in 49 states with combined annual sales of more than $8 billion. L&W Supply will operate as a separate division of ABC Supply.