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.