USG Corporation (NYSE:USG), a leading building products company, retained FTI Consulting to advise on the $670 million sale of its distribution business, L&W Supply Corporation, to ABC Supply Company. L&W had been part of USG for more than 40 years and had previously been positioned as part of its core operations. It also represented a significant portion of USG’s overall business. As a result, USG needed an effective strategy to position the separation as a means of accelerating USG’s growth strategy, while also opening new opportunities for the distribution business.
Our Role With USG Corporation
FTI Consulting developed and executed a careful sequence of communications that ensured all USG and L&W employees, customers and suppliers learned of the separation as quickly as possible through direct communications that complemented the externally facing investor, analyst and media relations engagement plans. Stakeholder-specific communications issued alongside the press release anticipated the high velocity with which news travels in USG’s industry and pre-empted third-party commentary with news issued directly to stakeholders by their key contacts at the company. Company leaders then followed-up with a series of phone calls and meetings with employees, customers and suppliers to provide added reassurance at the same time the leadership team held a conference call with the investment community to ensure that the transaction and USG’s plans going forward were well understood by external audiences. Toolkits developed by FTI Consulting were provided to all key communicators on the eve of the announcement to ensure consistent timing and delivery in all communications as well as proper escalation of any emerging issues.
On August 29, 2016, USG and ABC Supply announced a definitive agreement by which ABC Supply would acquire L&W Supply for total cash consideration of $670 million. Feedback on the separation – both internal and external – was generally positive and reflected a high level of understanding and confidence in the company’s future prospects.
USG Corporation continues to be an FTI Consulting client.