American Securities Closes Acquisition of Foundation Building Materials - Modern Distribution Management

American Securities Closes Acquisition of Foundation Building Materials

Firm completes $1.4 billion acquisition of distributor from an affiliate of PE firm Lone Star Funds, which had acquired FBM in 2015 and maintained a majority ownership since the company’s 2017 IPO.
Foundation Building Materials

Private equity firm American Securities LLC, New York, and specialty building products distributor Foundation Building Materials Inc. (NYSE: FBM), Santa Ana, California, on Friday announced the closing of American Securities’ acquisition of FBM.

American Securities in November agreed to acquire the distributor for $19.25 per share, or $1.4 billion, including outstanding debt.

The firm bought the company from an affiliate of Lone Star Funds, another private equity firm, which had acquired FBM in 2015 and maintained a majority ownership since the company’s initial public offering in 2017. FBM is now a privately held company.

“Under private ownership, FBM will have greater flexibility to intensify its focus on serving customers across the U.S. and Canada,” said Ruben Mendoza, president and CEO of FBM.

“We have long admired FBM’s talented team members and its track record of market leadership and growth,” said Kevin Penn, a managing director of American Securities. “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.”

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!