MILWAUKEE _ ABC Supply says it has an agreement to buy L&W Supply, a Chicago-based distributor of drywall, ceiling tiles, steel framing and other materials, for $670 million.
ABC, based in Beloit, says it will be one of the firm's largest acquisitions to date.
After the sale, ABC will operate more than 700 locations in 49 states, with annual sales of more than $8 billion.
L&W Supply, currently owned by USG Corp., has 136 branches in 35 states. The company, founded in 1971, reported $1.4 billion in revenue in 2015.
L&W Supply will operate as a separate division of ABC Supply, according to ABC.
The transaction is subject to the Hart-Scott-Rodino Antitrust Improvements Act and is expected to close in the fourth fiscal quarter, ABC said in a news release.
"As a world-class distributor of interior building materials, L&W reninforces ABC's leadership position in building materials distribution and helps set the stage for our next phase of growth," Keith Rozolis, ABC president and chief executive officer said in the release.
