American Securities completes purchase of Foundation Building Materials

American Securities, the New York-based private equity firm, has completed its acquisition of Foundation Building Materials, Inc. (FBM).

With headquarters in Santa Ana, Calif., FBM is one the nation’s largest specialty building product distributors of wallboard, suspended ceiling systems, metal framing, and complementary products in North America with more than 170 branches in the United States and Canada. 

Terms of the deal, announced last November, included American Securities acquiring shares of FBM for $19.25 per share in an all-cash transaction valued at approximately $1.37 billion, including outstanding debt. 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.”

American Securities is also acquiring Beacon’s interior products business in an $850 million deal. The sale includes 81 branch locations, which distribute wallboard, acoustical ceilings, steel framing, and insulation to both residential and commercial contractors.