History
Timeline
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History of American Gypsum
In June of 1959, a small group of investors led by Elliot McDowell secured mining rights to the White Mesa gypsum deposits near San Ysidro, NM and soon began construction on a wallboard plant in Albuquerque, NM. When the plant was completed in 1960 it was one of only twelve wallboard production facilities in the country.
The American Gypsum Company operated independently until late 1965, when stockholders of American Gypsum and the Susquehanna Corporation approved a merger.
The Susquehanna Corporation operated American Gypsum as a subsidiary for several years before selling the company, in November of 1971, to a group of private investors led by Elliot McDowell. The company operated as a private entity throughout the turbulent markets of the 1970s.
In the early 1980s the plant was closed and in bankruptcy. Mr. McDowell persuaded the Allied Bank of Texas to provide the financing needed for a fresh start. With financing secured, McDowell reopened the plant as Allied American Gypsum.
In the mid 1980s the Centex Corporation was expanding their building materials portfolio. Already invested in concrete, cement, and aggregate operations, a logical extension was the acquisition of Allied American Gypsum on February 21, 1985. With the purchase completed, the company was renamed Centex American Gypsum.
The strength of Centex allowed the small operating facility in Albuquerque, NM to weather the typical operating cycles of the construction industry and begin making the changes required to improve efficiency and product quality.
In 1989 Centex approved the construction of a new manufacturing facility. Centex and Centex American Gypsum chose a site in Bernalillo, NM. The Bernalillo plant began operations in 1991 and quickly became an integral part of Centex American Gypsum. By the mid 1990s the company’s story changed from one of instability and inefficiency to strategic direction and high profitability.
In 1994 the Centex Corporation consolidated its concrete, cement, aggregate and wallboard operations into one company. With this consolidation Centex planned an IPO for the newly formed company. On April 19, 1994 the IPO for the Centex Construction Products Company was successfully completed and the company began trading on the NYSE under the symbol CXP. The Centex Corporation remained the majority shareholder of all CXP stock until 2004.
By 1997 Centex Construction Products and Centex American Gypsum began looking for more growth opportunities. On February 26, 1997 Centex American Gypsum acquired the Eagle-Gypsum Products Company. With this acquisition, the company added a third manufacturing facility and a second gypsum quarry located in Gypsum, Colorado. Company management quickly realized the opportunity existed to dramatically expand the plant’s capacity. By April of 1999 a 60% capacity expansion of our Gypsum, CO plant was completed.
Soon after the successful acquisition of the Eagle-Gypsum Products Company management renamed the company American Gypsum Company. The company focused on product development for brands such as Eagleroc®, Aquabloc®, Smoothroc®, and Firebloc®.
Centex Construction Products and American Gypsum again turned its focus on possible acquisitions. On November 11, 2000 Centex Construction Products announced the purchase of the Republic Group Holding Corporation. With the Republic Group acquisition American Gypsum acquired its fourth operating facility, its third gypsum quarry and the Hollis & Eastern short-line railroad. The Republic Paperboard operations were organized as a separate subsidiary under Centex Construction Products.
Early in 2004 the Centex Corporation divested its remaining stake in the Centex Construction Products Company. On January 30, 2004 Centex Construction Products Company was spun-off and renamed Eagle Materials Company. Eagle Materials moved to a new corporate headquarters in Dallas, TX. The new offices allowed American Gypsum to move its headquarters from Albuquerque, NM to Dallas, TX.
On April 1, 2005 Eagle Materials and American Gypsum announced plans to construct a new wallboard manufacturing facility in Georgetown, SC. It will be the first plant in the company’s history to use 100% synthetic gypsum ore. This facility will allow American Gypsum to expand distribution capabilities to better serve our customers in the Sunbelt. Start-up is scheduled for early 2008.
