USG
USG Corporation is an American building-materials company best known for Sheetrock gypsum panels, joint compounds, and related wall and ceiling systems.
Last updated November 4, 2026
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Overview
USG Corporation, historically known as United States Gypsum Corporation, is an American manufacturer and distributor of construction materials. Its business has centered on gypsum-based products used in interior walls, ceilings, finishing systems, and commercial construction. The company is particularly associated with the Sheetrock brand, one of the best-known names in gypsum wallboard, as well as Securock glass-mat sheathing and a range of joint compounds, plasters, ceiling systems, and building accessories. USG has also been described as the largest distributor of wallboard in the United States and a leading North American producer of gypsum products. The company traces its technological origins to nineteenth-century plasterboard development. Employees of the New York Coal Tar Chemical Company, including Fred L. Kane and Augustine Sackett, developed a plaster panel reinforced with paper. Sackett patented the resulting Sackett Board in 1894. On December 27, 1901, approximately 30 gypsum and plaster companies combined to create the United States Gypsum Company, bringing together dozens of mining and calcining operations and establishing one of the first nationwide gypsum businesses in the United States. USG acquired the Sackett Plaster Board Company in 1909. The acquisition provided access to the technology that eventually developed into a single-layer gypsum-and-paper panel capable of producing relatively smooth, flush walls. USG patented an improved process in 1912 and introduced the Sheetrock name in 1917. The brand became central to the company's identity and helped popularize drywall as a practical alternative to traditional wet plaster. Manufacturing scale, vertical integration, geographically distributed plants, and product diversification enabled USG to remain profitable through much of the Great Depression. Buildings at the 1933 Chicago World's Fair made extensive use of Sheetrock panels and supported an early major advertising push for the product. During the postwar period, USG expanded its operations beyond the United States, including into Mexico and other international markets. In the 1980s, recession and financial pressure prompted a restructuring. On January 1, 1985, USG Corporation was created as a holding company through a reverse merger, with United States Gypsum Company becoming one of its operating subsidiaries. The corporation later invested heavily in high-speed wallboard production and modernized facilities in the United States. It also expanded through acquisitions, including the 1999 purchase of Sybex, the holding company for Beadex and Synkoloid. USG entered Chapter 11 bankruptcy in 2001 to address legacy asbestos litigation connected with specialty products that had contained asbestos and had been discontinued decades earlier. Its operating businesses continued functioning during the proceedings. The reorganization was completed in 2006, creditors were repaid in full, and shareholders retained equity. A trust funded with approximately $3.95 billion was established to handle existing and future asbestos claims. The housing and commercial-construction downturn that began in the mid-2000s reduced demand for drywall. USG responded with cost reductions, facility closures, and operational changes, including the 2011 closure of its Empire, Nevada, operation. Under CEO James S. Metcalf, the company pursued a Plan to Win focused on core manufacturing, the L&W Supply distribution business, revenue diversification, and differentiated products and services. Berkshire Hathaway became USG's largest shareholder in 2013 after converting convertible notes acquired in 2008 into common stock. In June 2018, USG agreed to be acquired by privately held building-materials manufacturer Knauf. The transaction closed in April 2019. USG subsequently operated as an independent Knauf subsidiary while retaining its Chicago headquarters and continuing to market its established product brands. Its operations include gypsum mining and processing, wallboard manufacturing, finishing products, ceiling systems, and distribution. USG's Plaster City, California, operation is notable for its gypsum quarry and industrial narrow-gauge railway, which transports gypsum rock to the plant.
History
USG's history combines nineteenth-century plasterboard invention, early twentieth-century industry consolidation, product branding, vertical integration, financial restructuring, and eventual acquisition by Knauf. The technical foundation came from Sackett Board, a plaster product reinforced with paper and patented in 1894 by Augustine Sackett. USG acquired the Sackett Plaster Board Company in 1909 and subsequently developed a manufacturing method that placed a single layer of gypsum between paper surfaces. Patented in 1912, the improved panel could be installed with comparatively smooth joints. USG introduced the Sheetrock name in 1917, turning a manufacturing innovation into a durable consumer and trade brand. The United States Gypsum Company was formed on December 27, 1901, through the combination of approximately 30 companies and 37 mining and calcining plants. Consolidation gave the new enterprise national reach in a fragmented market characterized by plentiful gypsum, relatively simple processing, and pressure on prices. USG responded with distributed plants, control over raw-material sources, and a broader portfolio of construction and agricultural products. The strategy helped the company remain profitable during the Great Depression. Sheetrock's visibility at the 1933 Chicago World's Fair contributed to public and industry awareness of drywall construction. After World War II, USG expanded internationally, including in Mexico, while broadening its product and distribution activities. Its later portfolio included gypsum panels, joint compounds, plasters, ceiling systems, building accessories, and distribution through L&W Supply. In 1985, following recession-related financial pressure and restructuring, USG Corporation became the holding-company structure for United States Gypsum Company and other operating subsidiaries. The company invested in large, high-speed wallboard plants and modernized older facilities during the 1990s. In 1999 it acquired Sybex, associated with Beadex and Synkoloid, strengthening its position in joint compounds and related finishing products. USG's legal history includes major antitrust proceedings. A 1940 Justice Department case challenged price-related provisions in earlier patent cross-licensing arrangements, and a 1950 Supreme Court outcome required USG and licensees to stop setting wallboard prices. Separate litigation concerning alleged gypsum-board price coordination covered conduct examined during the late 1960s and early 1970s. In a criminal antitrust case arising from the 1960–1973 period, convictions were later reversed and the reversal was affirmed by the Supreme Court because of errors concerning jury instructions and trial procedure. The company filed for Chapter 11 in 2001 because of asbestos claims tied to discontinued specialty products. The filing was not described as an operational collapse: USG's businesses continued operating, and the reorganization concluded in 2006 with full repayment of creditors, preservation of shareholder equity, and creation of a roughly $3.95 billion asbestos trust. USG then faced the severe construction downturn that began in the mid-2000s. Falling residential and commercial demand led to cost reductions and plant closures, including the Empire, Nevada, closure in 2011. James S. Metcalf, a long-serving USG executive, became chairman, president, and CEO in 2010 after William C. Foote's retirement. Metcalf's Plan to Win emphasized manufacturing efficiency, L&W Supply, diversification, and product innovation. The company returned to quarterly profitability in 2013. That year Berkshire Hathaway became the largest shareholder after converting previously acquired convertible notes into common shares. In 2018 USG agreed to be acquired by Knauf, and the transaction closed in April 2019. USG thereafter remained a Chicago-headquartered Knauf subsidiary, retaining its principal brands and operating capabilities.
- 2019
Acquisition completed
[1]Knauf completed its acquisition of USG in April.
- 2018
Knauf acquisition agreement
[1]USG agreed to be acquired by Knauf.
- 2013
Berkshire Hathaway becomes largest shareholder
[1]Berkshire Hathaway converted USG notes into common stock and became the company's largest shareholder.
- 2006
Reorganization completed
[1]USG completed its bankruptcy reorganization and established an asbestos claims trust.
- 2001
Chapter 11 filing
[1]USG entered Chapter 11 to resolve legacy asbestos litigation.
- 1999
Sybex acquisition
[1]USG acquired Sybex, associated with Beadex and Synkoloid finishing-material businesses.
- 1985
USG Corporation holding company created
[1]A reverse merger created USG Corporation as the holding company for United States Gypsum Company and other subsidiaries.
- 1933
Chicago World's Fair exposure
[1]World's Fair buildings using Sheetrock helped support one of the brand's first major advertising campaigns.
- 1917
Sheetrock name introduced
[1]USG began using the Sheetrock name for its gypsum-board product.
- 1909
Acquisition of Sackett Plaster Board Company
[1]USG acquired the company associated with the Sackett Board invention.
Products and positioning
A technically focused, vertically integrated building-materials supplier specializing in gypsum wallboard, finishing systems, ceilings, and related products for residential, commercial, and institutional construction.
Gypsum wallboard · 1917
Sheetrock Brand Gypsum Panels
USG's signature gypsum-panel line, used for interior wall and ceiling construction. Sheetrock panels helped establish drywall as a scalable alternative to traditional wet plaster and remain the company's most recognizable branded offering.
Joint compound
Sheetrock Brand All Purpose Joint Compound
A finishing material used to cover fasteners, embed joint tape, fill seams, and create smooth surfaces over gypsum panels. The all-purpose formulation is marketed for multiple stages of drywall finishing.
Exterior sheathing
Securock Brand Glass-Mat Sheathing
Glass-mat-faced gypsum sheathing designed for use behind exterior cladding and in assemblies requiring improved resistance to moisture and weather exposure compared with conventional interior wallboard.
Ceilings
USG Ceiling Systems
A portfolio of ceiling panels, suspension systems, and related components for commercial, institutional, and interior architectural applications.
Distribution
L&W Supply
USG's distribution business supplied wallboard, ceilings, framing, insulation, and related construction materials to professional contractors and building-material customers.
Controversies
2012
Drywall price-fixing allegations
A class-action complaint accused USG and other manufacturers of violating federal antitrust law by raising drywall prices and ending a project price-lock practice. USG denied unlawful participation.
2001
Asbestos litigation and Chapter 11
USG entered Chapter 11 to resolve claims associated with asbestos in specialty products that had been discontinued decades earlier. The reorganization established a trust for existing and future claims.
Marketing campaigns
- 1933Chicago World's Fair Sheetrock promotion
United States
Buildings made substantially with Sheetrock at the Chicago World's Fair gave the product prominent public exposure and supported an early major advertising campaign.
Outcome. Increased visibility for drywall construction and the Sheetrock brand.
Brand decisions
2018
Agree to Knauf acquisitionM&ABackground
USG pursued a transaction with a privately held global building-materials company.
Action taken
USG agreed to be purchased by Knauf.
Aftermath
The deal closed in April 2019, and USG continued as an independent Knauf subsidiary.
2001
File for Chapter 11 protectionOtherBackground
Legacy asbestos lawsuits created substantial long-term legal exposure.
Action taken
USG sought Chapter 11 protection while maintaining operations and later established an asbestos trust.
Aftermath
The case concluded in 2006 with creditors repaid in full and shareholder equity preserved.
1985
Create a holding-company structureStrategyBackground
Recession and financial pressure contributed to a corporate restructuring.
Action taken
USG Corporation was formed through a reverse merger, with United States Gypsum Company becoming an operating subsidiary.
Aftermath
The structure supported a broader group of operating subsidiaries and brands.
Sources1 sources
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