– American Securities LLC and Clayton, Dubilier & Rice (CD&R) entered into a definitive agreement to sell Foundation Building Materials, Inc. (FBM) to Lowe’s Companies, Inc. for $8.8 billion.
– FBM is a leading North American distributor of interior building products, including drywall, metal framing, ceiling systems, commercial doors/hardware, insulation, and complementary products.
– FBM serves both new construction and repair/remodel applications with a network of more than 370 locations in the U.S. and Canada, reaching 40,000 Pro customers.
– Since 2011, FBM has grown organically and inorganically to become an industry leader.
– Under American Securities and CD&R ownership, FBM achieved 27% annual revenue growth and 31% annual EBITDA growth.
– Growth was driven by organic expansion and strategic acquisitions, including Beacon Roofing Supply’s interior products business, Marjam Supply Company, Unified Door & Hardware, and REW Materials.
– The company launched a new e-commerce platform and digital application and invested to expand its commercial capabilities.
– Ruben Mendoza, CEO of FBM, credited American Securities and CD&R for accelerating growth, expanding capabilities, and strengthening market position.
– Kevin Penn, Partner at American Securities, emphasized strategic M&A, market expansion, and e-commerce innovation.
– John Stegeman, CD&R Operating Advisor and Chairman of FBM, highlighted improved customer value proposition and long-term growth potential.
– Aaron Maeng, Partner at American Securities, noted the building of a resilient, customer-focused business.
– Tyler Young, Principal at CD&R, pointed to recent strategic acquisitions and organic initiatives positioning FBM for future success with Lowe’s.
– The transaction is expected to close in Q4 2025, subject to customary closing conditions and regulatory approvals.
– RBC Capital Markets acted as exclusive financial advisor, while Weil, Gotshal & Manges LLP served as legal counsel to FBM, American Securities, and CD&R.
