Major Acquisition Completed: Foundation Building Materials Sold for $8.8B
Overview of the Acquisition
American Securities LLC and CD&R have successfully finalized the significant sale of Foundation Building Materials, a preeminent company in the distribution of building materials, to Lowe's Companies, Inc. This monumental transaction is valued at an impressive $8.8 billion.
Foundation Building Materials: A Major Player
Foundation Building Materials (FBM) stands out as a leading distributor in North America, specializing in interior building products such as drywall, metal framing, ceiling systems, and various construction-related products. It caters primarily to large residential and commercial clients, supporting their needs in both new construction and renovations.
Integration into Lowe's Strategy
As FBM integrates into Lowe's Total Home strategy, it aims to enhance the service offerings available to professionals and consumers. This strategic acquisition will undoubtedly reshape how Lowe's delivers products and services, ensuring a comprehensive solution for all home-related needs.
Key Insights from Stakeholders
Kevin Penn, a Partner at American Securities, expressed gratitude towards Ruben Mendoza and the dedicated team at FBM for their exceptional collaboration over the years. He voiced excitement about FBM entering a new era under Lowe's ownership.
Future Growth Prospects
Tyler Young, a Principal at CD&R, lauded the achievements of the FBM team in advancing both organic growth and business stability. He believes that FBM is strategically positioned to thrive alongside Lowe's, enhancing customer service and leveraging longstanding supplier relationships.
FBM's Growth Under American Securities and CD&R
During its tenure under American Securities and CD&R, FBM grew substantially, boasting more than 370 locations across the U.S. and Canada. The company serves around 40,000 professional customers and has seen remarkable annual revenue and EBITDA growth rates of 27% and 31%, respectively.
About Foundation Building Materials
Founded in 2011 and headquartered in California, FBM has expanded its reach extensively throughout North America. With a commitment to addressing the evolving requirements of professional construction sectors, FBM is well-equipped to tackle future challenges in the industry.
About American Securities
American Securities, based in New York and with operations in Shanghai, is renowned for its investments in leading North American companies with annual revenues typically ranging from $200 million to $2 billion. With over $23 billion under management, the firm continues to play a pivotal role in the private equity landscape.
About CD&R
CD&R, established in 1978, emphasizes sustainable business practices while achieving significant investment returns. The firm's long-term perspective promotes value creation through effective partnerships with management teams across various industries, showcasing their commitment to positive impact.
Media Contact Information
For inquiries regarding American Securities, please contact Joshua Rosen or Devin Shorey at Prosek Partners via email at pro-americansecurities@prosek.com. For CD&R inquiries, reach out to Jon Selib at jselib@cdr.com.
Frequently Asked Questions
What is the value of the transaction involving FBM?
The sale of Foundation Building Materials to Lowe's is valued at approximately $8.8 billion.
Who were the stakeholders involved in this acquisition?
The key stakeholders include American Securities LLC, CD&R, and Lowe's Companies, Inc.
What products does Foundation Building Materials distribute?
FBM distributes a variety of interior building products like drywall, metal framing, ceiling systems, and more.
How many locations does FBM have across North America?
FBM operates over 370 locations across the United States and Canada.
What growth rates has FBM experienced?
FBM has achieved annual revenue growth of 27% and EBITDA growth of 31% under the ownership of American Securities and CD&R.
About The Author
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