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GMS to Bolster Canadian Market Presence With Yvon Buyout
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GMS Inc. (GMS - Free Report) , a leading distributor of specialty building products in North America, announced a significant expansion move by acquiring Yvon Building Supply Inc., Yvon Insulation Corporation, Laminated Glass Technologies, Inc., and Right Fit Foam Insulation Ltd.
The deal, valued at up to CAD$196.5 million, aims to enhance GMS Canada's offerings and services in Ontario. Subject to regulatory approvals, the transaction is expected to close in July 2024, funded through cash on hand and borrowings under GMS's revolving credit facility.
Shares of GMS lost 3.2% during the trading session on May 16, 2024.
Strengthening Ontario Market Capabilities
Yvon, a well-established team in Ontario's building industry for over a decade, provides a comprehensive range of primary light construction materials. This acquisition aligns with GMS Canada's strategy to bolster its in-market service capabilities, enabling better support for a growing customer base in the expanding southern Ontario market. Yvon's extensive product lineup, from drywall and insulation to construction tools and accessories, complements the company’s offerings, promising enhanced market synergy.
Yvon's impressive financial performance, with net revenues exceeding CAD$190 million for the trailing 12 months that ended Feb 29, 2024, underscores its market strength. By integrating Yvon's operations, GMS Canada not only diversifies its product portfolio but also strengthens its market position in a key geographic area.
Post-acquisition, Yvon will continue operating under its existing brand names and leadership of the current president, Mr. Scott. This operational continuity ensures that customers will experience a seamless transition and sustained service quality. Moreover, Yvon will collaborate with GMS Canada’s Watson and Blair brands, fostering a stronger market presence and enhanced customer support.
The acquisition of Yvon by GMS is a strategic move that significantly enhances GMS Canada's capabilities and market presence in Ontario. This deal exemplifies GMS's commitment to growth and customer service, ensuring long-term value creation for stakeholders.
Share Price
Shares of GMS have gained 44.1% over the past year, outperforming the Zacks Building Products - Retail industry’s 16.3% rise. The company has been benefiting from continued solid demand in multi-family and commercial end markets, coupled with an improving single-family backdrop. GMS' growth strategy focuses on expanding the platform through strategic acquisitions and new development opportunities while also prioritizing debt reduction.
Image Source: Zacks Investment Research
In March 2024, GMS finalized its previously announced acquisition of Kamco Supply Corporation, a top supplier of ceilings, wallboard, steel, lumber, and other complementary construction products in the New York City metropolitan area. Integrating Kamco into the GMS family broadens GMS' market share in core products and extends its geographic reach into the highly attractive New York City market, thereby advancing two key strategic priorities.
The growth prospect of this current Zacks Rank #2 (Buy) company is further solidified with a VGM Score of A, backed by a Value and Growth Score of A and B, respectively. The positive trend signifies bullish analysts’ sentiments and robust fundamentals in the near term.
WING has a trailing four-quarter earnings surprise of 21.4%, on average. The stock has surged 93.2% in the past year. The Zacks Consensus Estimate for WING’s 2024 sales and earnings per share (EPS) suggests growth of 27.5% and 36.7%, respectively, from the year-ago period’s levels.
The Gap, Inc. (GPS - Free Report) currently sports a Zacks Rank of 1. GPS has a trailing four-quarter earnings surprise of 180.9%, on average. The stock has surged 192.1% in the past year.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales and EPS suggests a decline of 0.3% and 4.9%, respectively, from the year-ago period’s levels.
Brinker International, Inc. (EAT - Free Report) currently carries a Zacks Rank #2. EAT has a trailing four-quarter earnings surprise of 213.4%, on average. The stock has risen 65.1% in the past year.
The Zacks Consensus Estimate for EAT’s fiscal 2024 sales and EPS indicates a 5% and a 39.2% rise, respectively, from the year-ago period’s levels.
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GMS to Bolster Canadian Market Presence With Yvon Buyout
GMS Inc. (GMS - Free Report) , a leading distributor of specialty building products in North America, announced a significant expansion move by acquiring Yvon Building Supply Inc., Yvon Insulation Corporation, Laminated Glass Technologies, Inc., and Right Fit Foam Insulation Ltd.
The deal, valued at up to CAD$196.5 million, aims to enhance GMS Canada's offerings and services in Ontario. Subject to regulatory approvals, the transaction is expected to close in July 2024, funded through cash on hand and borrowings under GMS's revolving credit facility.
Shares of GMS lost 3.2% during the trading session on May 16, 2024.
Strengthening Ontario Market Capabilities
Yvon, a well-established team in Ontario's building industry for over a decade, provides a comprehensive range of primary light construction materials. This acquisition aligns with GMS Canada's strategy to bolster its in-market service capabilities, enabling better support for a growing customer base in the expanding southern Ontario market. Yvon's extensive product lineup, from drywall and insulation to construction tools and accessories, complements the company’s offerings, promising enhanced market synergy.
Yvon's impressive financial performance, with net revenues exceeding CAD$190 million for the trailing 12 months that ended Feb 29, 2024, underscores its market strength. By integrating Yvon's operations, GMS Canada not only diversifies its product portfolio but also strengthens its market position in a key geographic area.
Post-acquisition, Yvon will continue operating under its existing brand names and leadership of the current president, Mr. Scott. This operational continuity ensures that customers will experience a seamless transition and sustained service quality. Moreover, Yvon will collaborate with GMS Canada’s Watson and Blair brands, fostering a stronger market presence and enhanced customer support.
The acquisition of Yvon by GMS is a strategic move that significantly enhances GMS Canada's capabilities and market presence in Ontario. This deal exemplifies GMS's commitment to growth and customer service, ensuring long-term value creation for stakeholders.
Share Price
Shares of GMS have gained 44.1% over the past year, outperforming the Zacks Building Products - Retail industry’s 16.3% rise. The company has been benefiting from continued solid demand in multi-family and commercial end markets, coupled with an improving single-family backdrop. GMS' growth strategy focuses on expanding the platform through strategic acquisitions and new development opportunities while also prioritizing debt reduction.
Image Source: Zacks Investment Research
In March 2024, GMS finalized its previously announced acquisition of Kamco Supply Corporation, a top supplier of ceilings, wallboard, steel, lumber, and other complementary construction products in the New York City metropolitan area. Integrating Kamco into the GMS family broadens GMS' market share in core products and extends its geographic reach into the highly attractive New York City market, thereby advancing two key strategic priorities.
The growth prospect of this current Zacks Rank #2 (Buy) company is further solidified with a VGM Score of A, backed by a Value and Growth Score of A and B, respectively. The positive trend signifies bullish analysts’ sentiments and robust fundamentals in the near term.
Other Key Picks
Wingstop Inc. (WING - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
WING has a trailing four-quarter earnings surprise of 21.4%, on average. The stock has surged 93.2% in the past year. The Zacks Consensus Estimate for WING’s 2024 sales and earnings per share (EPS) suggests growth of 27.5% and 36.7%, respectively, from the year-ago period’s levels.
The Gap, Inc. (GPS - Free Report) currently sports a Zacks Rank of 1. GPS has a trailing four-quarter earnings surprise of 180.9%, on average. The stock has surged 192.1% in the past year.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales and EPS suggests a decline of 0.3% and 4.9%, respectively, from the year-ago period’s levels.
Brinker International, Inc. (EAT - Free Report) currently carries a Zacks Rank #2. EAT has a trailing four-quarter earnings surprise of 213.4%, on average. The stock has risen 65.1% in the past year.
The Zacks Consensus Estimate for EAT’s fiscal 2024 sales and EPS indicates a 5% and a 39.2% rise, respectively, from the year-ago period’s levels.