Five Takeaways

• Acquisition for Growth: Fortress Investment Group has acquired Gyptech, a Canadian gypsum and asphalt shingle equipment manufacturer, to support global expansion and technology development.
• Strategic Investment: Fortress acquired a majority stake, while Gyptech’s management keeps a minority share, ensuring growth and continuity.
• Focus on Sustainability: Gyptech is advancing energy-efficient technologies, including heat pump systems, to reduce natural gas use and lower carbon emissions in sustainable construction.
• Expanded Services: Fortress aims to improve Gyptech's client support, optimize equipment performance, and expand aftermarket services like spare parts and technical offerings.
• Global Impact: Gyptech's strong presence in North America and Europe, innovative solutions, and strategic investments position it as a global leader in sustainable construction practices.

Canadian gypsum and asphalt-shingle equipment and services manufacturer Gyptech, based in Burlington, Ontario, along the lower stretch of Lake Ontario halfway between Toronto and Niagara Falls, has been acquired by affiliates of New York-based private equity firm Fortress Investment Group.

Gyptech, founded in 1993, enjoys a notable market share presence in North America and Europe. According to a 2024 company profile by Pitchbook, a substantial portion of its revenue comes from imports. Competitors in the market include Prinova Group and KMW Group.

Fortress Investment Group announced the deal in a Nov. 27 news release, saying the acquisition will provide “strategic support for Gyptech’s global growth, with an emphasis on the scaling of innovative technologies and the expansion of comprehensive client services.” Fortress funds have acquired most Gyptech shares, with the company’s management team retaining a minority stake.

Gyptech designs, engineers and fabricates new and replacement production lines for gypsum wallboard and asphalt-shingle facilities. The company supports all stages of gypsum production, from raw material processing to finished products, and has been at the forefront of asphalt-shingle manufacturing technology innovation. 

“With Fortress’ backing, we will continue to grow our aftermarket services and bring to market energy-efficient technologies that are crucial for the future of sustainable construction,” said company CEO Jeremy McKellar. “We are excited to work with Fortress to continue our legacy of innovation and service excellence.”

Fortress said its acquisition will “fuel the company’s plans to enhance client support, optimize equipment performance, and expand its aftermarket offerings, including spare parts and comprehensive technical services.” 

Additionally, Fortress mentioned Gyptech’s development of energy- and carbon-reduction technologies, such as heat pump systems, as an additional goal in reducing natural gas consumption and lowering carbon emissions from operations.

Ben Green, Fortress’s director, added: “Gyptech is a great company with a market-leading position supplying equipment that’s foundational to the building construction industry across the globe. With strong demand tailwinds and a great leadership team, we’re excited about the company’s growth opportunities. We look forward to working with Jeremy and the team to capitalize on those opportunities.”

Moelis & Company LLC is Fortress's exclusive financial advisor and Evercore is its financing placement agent. Terms of the deal were not disclosed. 

For more information, visit fortress.com.