GMS Inc. Assigned 'BB-' Rating, Put On CreditWatch Developing; Other Rating Actions Taken

Tucker, Ga.-based wallboard and ceilings products distributor GMS Inc. has announced a definitive agreement to acquire Canada-based building products distributor WSB Titan for $627 million. We are placing the 'BB-' corporate credit rating on Gypsum Management&Supply Inc. on CreditWatch with developing implications. We expect the acquisition will provide further geographic and product diversification for GMS and will likely result in higher EBITDA margins for the company. At the same time, we expect debt leverage to increase to over 4x from 3.2x as a result of new debt associated with the acquisition. We are assigning our 'BB-' corporate credit rating to GMS Inc., the public parent corporation, and placing this rating on CreditWatch with developing implications. We are withdrawing

...+ Tucker, Ga.-based wallboard and ceilings products distributor GMS Inc. has announced a definitive agreement to acquire Canada-based building products distributor WSB Titan for $627 million. + We are placing the '##-' corporate credit rating on Gypsum Management & Supply Inc. on CreditWatch with developing implications. + We expect the acquisition will provide further geographic and product diversification for GMS and will likely result in higher EBITDA margins for the company. At the same time, we expect debt leverage to increase to over 4x from 3.2x as a result of new debt associated with the acquisition. + We are assigning our '##-' corporate credit rating to GMS Inc., the public parent corporation, and placing this rating on CreditWatch with developing implications. + We are withdrawing the Gypsum Management & Supply Inc. rating, as the corporate credit rating will now be in the name of GMS Inc. + The CreditWatch developing placement indicates that we could affirm, raise, or lower...

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