New York-based private equity firm American Securities completed its previously announced acquisition of Foundation Building Materials (FBM). Santa Anna, Calif.-based FBM is a specialty distributor of wallboard, suspended ceiling systems, metal framing, and complementary products throughout North America. The company operates over 170 branches across the U.S. and Canada and ranked 9th on the 2020 ProSales 100 list.
“Under private ownership, FBM will have greater flexibility to intensify its focus on serving customers across the U.S. and Canada,” Ruben Mendoza, president and CEO of FBM, said in a prepared statement.
As part of the deal, first announced in November, American Securities acquired all outstanding shares of FBM for $19.25 per share. The all-cash transaction was valued at approximately $1.37 billion, including outstanding debt. FBM was previously acquired by an affiliate of global private equity firm Lone Star Funds in 2015 and the affiliate had maintained a majority ownership of FBM since the distributor’s initial public offering in 2017.
“We have long admired FBM’s talented team members and its track record of market leadership and growth,” Kevin Penn, a managing director of American Securities, said. “We are excited to work alongside management to help the company execute its strategic plan and continue delivering high-quality products and service to its customers.”
American Securities also recently acquired the interior products business of Beacon in a deal valued at $850 million. Beacon’s interior products business consists of 81 branch locations that distribute wallboard, acoustical ceilings, steel framing, and insulation to residential and commercial contractors. At the time of the Beacon interior products acquisition, Penn said it was American Securities’ intention to combine the two companies.
