TUSTIN, Calif.--(BUSINESS WIRE)--Foundation Building Materials, Inc. (“FBM” or the “Company”) (NYSE: FBM), one of the largest specialty distributors of wallboard, suspended ceiling systems and mechanical insulation in North America, announced today that it has completed the acquisitions of two specialty building product distributors in Texas and Ontario, Canada to facilitate its growth strategy and expand its product offerings. The terms of the transactions were not disclosed.
- MCS Door & Hardware (“MCS”) is an independent distributor of doors, frames, hardware and toilet partition products. MCS was founded in 2000 in Bryan, Texas.
- Del-Pro Building Supplies, Inc. ("Del-Pro") is an independent distributor of wallboard, steel framing, insulation, basement blanket and spray foam products. Del-Pro was founded in 2012 in Ontario, Canada.
“With the closing of these transactions, FBM strengthens its wallboard market share in Canada and adds locations which complement its core product offerings,” said Ruben Mendoza, FBM’s Chief Executive Officer. “These two companies have a strong and successful history, largely created by the talent of their management and employees and long standing customer relationships. Senior management from the acquired companies will continue with FBM to ensure a smooth transition and quick integration.”
The Company expects that the two acquired companies’ performance will be consistent with prior years, collectively contributing an estimated $10 million to $12 million in annual net sales beginning in 2018, with immediately accretive bottom-line benefit due to scale and cost savings.
About Foundation Building Materials
Foundation Building Materials is a specialty distributor of wallboard, suspended ceiling systems, and mechanical insulation throughout North America. Based in Tustin, California, the Company employs more than 3,500 people and operates more than 220 branches across the U.S. and Canada.
This press release contains forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statements regarding the expected benefits to FBM and its shareholders from completing the acquisition, the expected revenue contribution by the acquired companies, the accretive benefit to FBM’s earnings, the expected integration of the acquired companies and the time frame in which this will occur, and plans regarding acquired companies’ personnel, and may contain words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,” or words or phrases with similar meaning. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, without limitation, economic, competitive, governmental and technological factors outside of FBM’s control, that may cause the business, strategy or actual results to differ materially from the forward-looking statements. We do not intend, and undertake no obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. Investors are referred to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.