United Software Group history

In 1902, 30 independent gypsum rock and plaster manufacturing companies merged to consolidate their resources and form the United States Gypsum Company.

In 1909 Avery set out to diversify the company with one of his first acquisitions, the Sackett Plasterboard Company of New York.

The evolution of Sackett Board continued and near the end of 1916, a new manufacturing innovation produced boards with a single layer of plaster and paper that could be joined flush along a wall with a relatively smooth surface.

In 1917, USG trademarked what would become its most iconic product—Sheetrock, their brand name for gypsum wall board widely used in residential and commercial construction.

In 1927 CertainTeed Products Corporation introduced its own wallboard, which did not have enclosed edges, and challenged US Gypsum for market share.

In 1928 Avery successfully predicted a recession that eventually became the Great Depression.

By 1929 CertainTeed was beaten.

Also in 1930, it bought into the metal-lath business with the purchase of the Youngstown Pressed Steel Company of Warren, Ohio, and the metal-lath division of Northwestern Expanded Metal Company.

The 1933-34 World's Fair in Chicago featured buildings made almost entirely out of Sheetrock® panels.

According to the February 1936 issue of Fortune, diffusion of production facilities allowed US Gypsum to keep transportation costs, and thus total costs down.

In 1940, a new problem confronted the company's management when the United States Justice Department filed suit against US Gypsum and six other wallboard manufacturers, charging them with price fixing.

In 1949, however, Chairman Avery predicted another depression--incorrectly--and began to rein in expansion.

In May 1951, when Sewell Avery resigned as US Gypsum's chairman and CEO, his replacement, Clarence H. Shaver, inherited a company that had a capitalized value of $61 million and produced more than 75 commodities in 47 mines or factories.

The criminal trial eventually found its way to the Supreme Court, which ordered a new trial, and in 1980 US Gypsum settled the case, agreeing to pay $2.6 million in taxes on deductions from earlier civil antitrust judgments.

In 1984, USG Corporation was formed as a holding company — a reverse merger in which United States Gypsum Company became one of just nine operating subsidiaries.

On January 1, 1985, a holding company, USG Corporation (USG), was created, and US Gypsum became the largest of the holding company's nine operating subsidiaries.

In 1987 USG acquired DAP Inc., maker of caulking and sealants, for $127 million.

USG--led by CEO Eugene B. Connolly starting in January 1990--attempted to reorganize outside of bankruptcy court through negotiations with its lenders.

Sold the following year were the Kinkead division (to Kohler Co.) and Marlite (to Commercial and Architectural Products Inc.). In September 1991 USG sold DAP to U.K.-based Wassall plc for $90 million.

The company returned to profitability in 1996, posting net income of $15 million on net sales of $2.59 billion.

By the end of 1997 total debt had been reduced to $620 million, marking the achievement of the firm's debt reduction target.

During 1998 USG continued to spend heavily on capital improvement projects and the construction of new plants.