GMS Inc (GMS), a leading specialty distributor of interior building products in North America, said earlier this week that it had bought Trowel Trades Supply Inc, a distributor based in Colchester, Vermont.
However, financial details of the agreement remained undisclosed.
GMS shares closed higher for a second consecutive trading session in New York on Wednesday. It has also been the sharpest single-session gain since October 15th 2019. The stock went up 3.50% ($0.92) to $27.17, after touching an intraday high at $27.37, or a price level not seen since January 31st ($27.82).
Shares of GMS Inc have risen 0.33% so far this year following an 82.23% gain in 2019.
By acquiring Trowel Trades, GMS enters Vermont and expands its coverage to a total of 44 states. It also comes after GMS Inc’s greenfield expansions in Portland, Maine and Manchester, New Hampshire.
Trowel Trades is to become part of GMS subsidiary, New England Gypsum Supply Inc, and its seven existing branch locations in Massachusetts, Connecticut, Maine and New Hampshire.
The company will keep functioning under the leadership of its current co-branch managers, Mike Smullen and Bernie Metivier.
“We’re excited to welcome the Trowel Trades family to GMS. We look forward to Mike, Bernie and the Trowel Trades team working closely with New England Gypsum Supply to better serve customers both in Vermont and across New England with the combined scale and capabilities of the two operations,” Mike Anderson, Vice President of the Northeast Division of GMS, said in a press release.
Established in 1968, Trowel Trades offers a full complement of interior building materials, masonry and hardscape products.
Analyst stock price forecast and recommendation
According to CNN Money, the 8 analysts, offering 12-month forecasts regarding GMS Inc’s stock price, have a median target of $33.50, with a high estimate of $36.00 and a low estimate of $28.00. The median estimate represents a 23.30% upside compared to the closing price of $27.17 on February 5th.
The same media also reported that at least 6 out of 8 surveyed investment analysts had rated GMS Inc’s stock as “Buy”, while 2 – as “Hold”.