GMS, a North American distributor of wallboard and suspended ceilings systems, will acquire 100% of the equity interests of WSB Titan for total consideration of approximately $627 million.

Barclays Bank, Credit Suisse and Credit Suisse Securities will act as joint lead bookrunners and provide GMS secured, fully-committed debt financing to support the transaction.

Under the terms of the agreement, GMS will acquire 100% of the equity interests of Titan from Titan’s current management and TorQuest Partners. Existing Titan management will roll over $35 million of their current ownership position into GMS stock.

The transaction is expected to close late in Q2/18, subject to customary closing conditions.

Mike Callahan, president and CEO of GMS, commented, “The acquisition of Titan further extends our leadership position as the largest wallboard distributor in North America with significant scale advantages and a well-balanced portfolio built for growth. The combination also provides us with a market leading position in Canada and the foundation to support future opportunities in this highly fragmented market. With a strong cultural fit and shared focus, we are confident this combination will be beneficial to both companies.”

Barclays Capital is serving as GMS’s exclusive financial advisor, with Jefferies acting as Titan’s exclusive financial advisor. Fried, Frank, Harris, Shriver & Jacobson is serving as lead legal advisor.

Headquartered in Toronto, WSB Titan is a gypsum specialty dealer serving the residential, commercial and institutional markets.