The Wayne, Pennsylvania-based AD member-owned buying and marketing group announced a merger between The Drake Group and AD’s Building Materials Division to form the AD Gypsum Supply Division.

This union brings together two of the largest independent gypsum supply buying groups in the United States, AD noted. AD Gypsum Supply is now comprised of 153 members with 387 branch locations.

Trent Chandler, executive committee chairman of the Drake Group and owner of Edgemont Stone & Supply Co., remarked: “AD’s recent transition to a member-owned organization helped pave the way for these two giants in gypsum supply to come together. By joining forces, we will get the best of both worlds; programs and services we value from Drake, expanded supplier and member relationships, and the multi-industry scale and professional infrastructure of AD. It’s a 1+1=3 scenario for all independent gypsum distributors.”

Lenin Juarez, AD Building Materials Division board chairman and managing partner of Action Gypsum, commented: “The critical mass of our newly combined membership will provide additional scale. We are now the largest buyer of wallboard and steel framing in the USA. In addition, the increase in membership will significantly enhance our members’ ability to network and share best practices among the best independent gypsum distributors in the country.”

Dan Maroni, president of AD Building Materials and the new AD Gypsum Supply Division, shared: “I am very grateful to the AD Building Materials board and the executive committee members of the Drake Group for its effective collaboration and leadership during the merger conversations. Over 10 years ago, the AMAROK Drywall cooperative joined AD to become AD Building Materials. I can speak without hesitation and from personal experience that when groups merge with AD, they are respected as equal partners. I look forward to ensuring that every new member of AD Gypsum Supply will receive the highest level of support from our team.”

The new AD Gypsum Supply Division will be part of the AD Building Materials business unit and will continue to be led by Dan Maroni. Robb Rugg, longtime Drake Group executive director, will be joining the new division in a consulting role through 2021, focused on the non-purchasing side of value-add.

"The significant synergies and strategic benefits of combining these two premier organizations is expected to result in mutual growth for leading gypsum manufacturers and distributors in the years to come," Rugg said.

AD announces
completion of IDI merger

AD also announced the completion of the merger with IDI Independent Distributors, effective April 1.

IDI is now AD Canada Industrial & Safety.

Key merger highlights:

• IDI brings 103 independent industrial Canadian distributors with more than 364 locations into the AD family.
• AD welcomes 21 new employees and a distribution center located in Mississauga, Ontario as part of the transaction.
• AD Canadian members represent 20% of AD consolidated sales.

IDI President Rob Dewar is now the president of AD Canada Industrial & Safety.