USG to acquire maker of specialty ceilings products
USG Corporation, the Chicago-based building products giant, reported that it has entered into a definitive agreement to acquire Ceilings Plus, a leading manufacturer of specialty ceilings products.
Upon closing, USG said it 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 and is forecast to generate 2017 sales in excess of $45 million. Company founder and president Nancy Mercolino will continue to lead the business and be based in Los Angeles, USG said.
Home Depot posts a $25 billion quarter
The world’s largest home improvement retailer posted third quarter sales of $25 billion, up 8.1% from the same quarter last year. Comparable store sales in the U.S were positive 7.7%.
The Atlanta-based giant said hurricanes and other disasters boosted comparable store sales growth by about $282 million, but the gross-margin on hurricane-related sales was considerably lower than the company average.
Net earnings increased 10.0% to $2.165 billion.
"Though this quarter was marked by an unprecedented number of natural disasters, including multiple hurricanes, wildfires in the West, and earthquakes in Mexico, the underlying health of our core business remains solid," said Craig Menear, chairman, CEO and president. "I am proud of our team and suppliers for their extraordinary efforts to support those in the path of the various natural disasters throughout the quarter. Our support of the impacted communities continues."
Based on its year-to-date performance, underlying strength of the core business, and projected hurricane recovery sales, the company lifted its fiscal 2017 sales growth guidance and now expects sales will be up approximately 6.3% and comp sales will be up approximately 6.5%.
The company increased its store count by one unit in the third quarter, bringing its footprint to a total of 2,283.
HBSDealer Stock Watch: Big Drop for SHLD
Gainers and decliners were evenly represented on the Stock Watch Monday, with SHLD and LL heading in the wrong direction – down 9.9% and 3.3%, respectively. On the positive side, TREX was up 2.7%.