History

The 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, New Mexico and soon began construction on a wallboard plant in Albuquerque, New Mexico. 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 Centex Corporation was expanding their building materials portfolio. Already invested in concrete, cement, and aggregate operations under the holding company named Centex Construction Products, Inc., 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 began 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, New Mexico. 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.

On April 19, 1994, Centex Corporation completed an initial public offering ("IPO") of Centex Construction Products, Inc. by selling 51% of the equity interest in Centex Construction Products, Inc. to the public. Centex Construction Products began trading on the NYSE under the symbol CXP. Centex Corporation retained its controlling interest in 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, Colorado plant was completed.

Subsequent to the acquisition of the Eagle-Gypsum Products Company, Centex American Gypsum Company was renamed American Gypsum Company. The Company focused on product development for brands such as Eagleroc®, Aquabloc®, Smoothroc®, and Firebloc®.

In 2000, Centex Construction Products and American Gypsum again turned their focus to possible acquisitions. On November 11, 2000 Centex Construction Products announced the purchase of certain strategic assets owned by Republic Group LLC. The strategic assets included a fourth gypsum wallboard plant, a third gypsum quarry, the Hollis & Eastern short-line railroad and a recycled paperboard operation, Republic Paperboard Company LLC. Republic Paperboard's principal product is wallboard facing paper. With the acquisition of Republic Paperboard, American Gypsum now had an internal supply for its paper needs.

Early in 2004 the Centex Corporation divested its remaining stake in the Centex Construction Products, Inc. by distributing its holdings in Centex Construction Products, Inc. to the shareholders of Centex Corporation. On January 30, 2004 Centex Construction Products, Inc. was spun-off and renamed Eagle Materials Inc. and began trading under the ticker symbol "EXP". Following the spin-off, in February 2004, Eagle Materials relocated its corporate headquarters in Dallas, Texas. In 2005, American Gypsum moved its headquarters from Albuquerque, New Mexico to Eagle Material's location in Dallas, Texas.

On April 1, 2005 Eagle Materials and American Gypsum announced plans to construct a new wallboard manufacturing facility in Georgetown, South Carolina. The South Carolina plant is American Gypsum’s first plant to use 100% synthetic gypsum. This facility allowed American Gypsum to expand distribution capabilities to better serve our customers in the Southeast.

Opening on time and under budget, our Georgetown, South Carolina manufacturing plant successfully completed its first production run on December 31, 2007.