NEW YORK — Clayton, Dubilier & Rice and American Securities LLC on Wednesday announced that funds managed by CD&R have acquired a significant ownership position in Foundation Building Materials Inc. from affiliates of American Securities.
FBM is a leading distributor of specialty building products. American Securities will continue to own a majority stake in FBM.
Founded in 2011, FBM operates in over 300 locations and serves a diverse customer base of more than 40,000 residential, non-residential and specialty contractors and homebuilders throughout the United States and Canada. Its products include gypsum wallboard, suspended ceiling systems, metal framing, and other construction materials. In 2021, FBM was acquired by American Securities and has since grown organically and through strategic acquisitions, including its combination with Beacon's interior products and insulation businesses. Through these initiatives, the company has strengthened its market presence, expanded its product and service offering to customers, and grown its employee base and footprint in key regions throughout North America.
"We are pleased to welcome CD&R as an investment partner alongside American Securities," said Ruben Mendoza, president and CEO of FBM. "CD&R has a longstanding track record of investing in and growing market-leading building products distribution companies like ours with an approach to value creation that is very much aligned with FBM's guiding values and operating principles. American Securities has been a trusted partner to FBM, and shares in the broader FBM team's excitement to have CD&R on board as we deepen our commitments to our FBM colleagues and customers and continue to build a successful business over the long-term."
"We have long admired FBM and have tremendous respect for the business Ruben and his team have built," said Nate Sleeper, CEO of CD&R. "We look forward to supporting FBM through its next phase of growth and to partnering with American Securities."
"FBM is a well-run, market-leading business that adds significant value for its customers and is well-positioned for growth," said Tyler Young, principal at CD&R. "Working alongside the teams at FBM and American Securities, we will focus on helping the company achieve its full growth potential, broadening and enhancing its industry-leading services and product offerings, and deepening its relationships with customers, employees, vendors, and communities across North America."
"We are confident this partnership with CD&R represents a compelling next step in the ongoing evolution of FBM and accelerates the company's growth course," said Kevin Penn, a managing director of American Securities. "In recent years, the company has made significant progress towards achieving key strategic priorities, including investing in a new e-commerce platform and digital application to facilitate enhanced service for customers, and is well-positioned to build on this momentum."
"Our team looks forward to working with CD&R to further scale and expand FBM and its value-added offerings," added Aaron Maeng, a managing director of American Securities. "With our strong pipeline of identified, actionable opportunities, long-term customer and supplier relationships, and core focus on culture and continuous improvement, we are excited to begin this next chapter."
As part of the transaction, three CD&R professionals will join FBM's board of directors. CD&R's investment in FBM was completed on Jan. 30.