Stout Advises EMJ on Sale to GMS

April 26, 2023

Stout has advised Engler, Meier & Justus, Inc. (“EMJ” or the “Company”) on its sale to Gypsum Management & Supply, Inc. (“GMS”). The transaction closed on April 3, 2023. Stout served as the exclusive sell-side financial advisor to EMJ in connection with the transaction.

Founded in 1962 and headquartered in Westmont, IL, EMJ is a leading distributor of drywall, acoustical ceilings, and related interior construction products to the greater Chicago market and exterior insulation finishing system (EIFS) related products in the Southeastern United States. EMJ currently operates under multiple brand names, including Westmont Interior Supply House and Contractors Acoustical Supply in Chicago. By becoming an Armstrong Ceilings distributor, EMJ and its two Chicago area locations add to GMS’s commercial capabilities in the market. EMJ’s EIFS locations in Charlotte, Raleigh, and Doraville add to GMS’s complementary product offerings in the Southeast.

Founded in 1971, GMS is publicly listed on the New York Stock Exchange and operates a network of approximately 300 distribution yards with extensive product offerings of wallboard, ceilings, steel framing, and complementary construction products. In addition, GMS operates approximately 100 tool sales, rental, and service centers, providing a comprehensive selection of building products and solutions for its residential and commercial contractor customer base across the United States and Canada.

“The Stout team did an excellent job leading us through the process and identifying the right partner for our family business. We are very excited about EMJ’s continued growth under its new ownership,” said Jim Engler, son of EMJ’s founder and former President of EMJ.

Gary Wietecha, current Vice President of Operations at EMJ, further commented, “We are extremely pleased with the outcome of this transaction and the insight and guidance provided by Stout. Through partnering with GMS, we begin an exciting new chapter of growth for the Company.” Mr. Wietecha is expected to continue to lead the business going forward, working closely with GMS’s Central Division.

“We are pleased to welcome the experienced and highly respected team from EMJ,” said John C. Turner, Jr., President and Chief Executive Officer of GMS. “Our partnership with EMJ significantly expands our presence and further enhances our service levels in the greater Chicago market.”

Kevin Manning, President of Investment Banking at Stout, led the transaction. Manning said, “We are thrilled with the outcome for both parties involved in this successful transaction and look forward to the continued growth and future success of EMJ in partnership with GMS.”

Stout’s Mark Abbott, Michael Brocious, Natalie Walgren, and Ben Murray also assisted in the execution of the transaction.

Huck Bouma P.C. and Rothschild Barry & Myers served as legal counsel to EMJ. Eversheds Sutherland served as deal counsel to GMS.

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