Action Gypsum Supply Acquires a Majority Share of Argos Material Distribution

HOUSTON, TEXAS (JUNE 19, 2017) – Statesman Corporate Finance, LLC (“Statesman”) is pleased to announce that Action Gypsum Supply, LP (“Action Gypsum”) has acquired a majority interest of ARGOS Material Distribution, LP (“ARGOS”) comprising two locations in Southern California and a newly opened location in Phoenix, AZ. ARGOS’ founders, Al and Tom Jordan, will retain a minority share and continue to manage the company’s operations.

Acquiring a majority interest in ARGOS allows Action Gypsum to expand its presence further west increasing its locations to 11 in total, with 8 in Texas, 2 in California, and 1 in Arizona. As more and more independent building materials distributors throughout the United States become acquired by large corporate entities, this strategic move reinforces both Action Gypsum’s and ARGOS’s positions as dominant, independent leaders in each of their respective markets.

“We couldn’t be more excited to partner with such a reputable company like Action Gypsum. Both companies share similar beliefs in company culture and approach to local markets with specific priority given to employees, customers, and supplier partners. I’m confident this will be a profoundly successful endeavor while maintaining our competitive advantage as a strong independent company.” – Al and Tom Jordan

“Al and Tom have assembled an incredible group of people there at ARGOS. Their growth has been impressive and together we look forward to combining our growth strategies to build an even more significant independent company throughout the west.”  – Lenin Juarez and Terri King Peak

About the Transaction Participants

Statesman Corporate Finance, LLC advised Action Gypsum in this transaction and is the FINRA licensed broker dealer affiliate of Statesman Business Advisors, LLC. With offices in Houston and Austin, Texas, Statesman is a leading middle-market investment banking firm providing merger and acquisition, capital formation, valuation and other general corporate financial advisory services to middle-market companies. The Statesman team advising on this engagement included Principal Will Jaco, Managing Director Erik Konicki, and Vice President Peter Chiu.

Action Gypsum Supply, LP, headquartered in Houston, TX, is primarily engaged in the wholesale distribution of building materials including wallboard, metal framing, acoustical products, insulation, doors and frames, and related supplies. They have been in operation for fourteen years with eight branches in major markets throughout Texas. The ARGOS acquisition will expand Action’s reach west into some of the largest and fastest growing markets in the country.

ARGOS Material Distribution, LP is a family owned building materials distribution company that began in 2012 with the goal of providing its customers with the highest quality of service in the industry. ARGOS is headquartered in Chino, CA with additional locations in Long Beach, CA, and now Phoenix, AZ, which was opened earlier this year in a joint venture with Action.

Texas Capital Bank (Dallas & Houston, TX), John Roberts, EVP, led the bank group providing financing for this transaction.

Andrews Myers, PC (Houston, TX) served as legal counsel for Action Gypsum led by Senior Counsel Brent Pharis and Shareholder Patrick Hayes; Fingal, Fahrney, & Clark (Newport Beach, CA), led by Partner Stephen Fingal, provided legal counsel to ARGOS; and Jackson Walker LLP (Houston, TX) provided legal counsel for Texas Capital Bank, led by Partner Lewis Kasner.