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 the Midwest to enhance its growth strategy and expand its product offerings. The terms of the transactions were not disclosed.
- For over 30 years, R M Supply, Inc. (“R M Supply”) has been an independent distributor of wallboard, steel framing, insulation, and wallboard accessories. R M Supply operates two branches in Wentzville and Herculaneum, Missouri.
- For almost 70 years, ArmCom Distributing Company ("ArmCom"), a division of the St. Paul Linoleum and Carpet Company, has been an independent distributor of ceiling products. ArmCom operates five branches: St. Louis Park, Minnesota; Rochester, Minnesota; Fargo, North Dakota; Sioux Falls, South Dakota; and Omaha, Nebraska.
“A fundamental component of our successful growth strategy is to secure highly-complementary acquisitions with compelling track records of success,” said Ruben Mendoza, FBM’s Chief Executive Officer. “R M Supply and ArmCom are ideal strategic and financial fits for our company and represent uniquely positive and durable attributes. They are, first and foremost, well-run companies and have longstanding customer relationships in the residential and commercial markets of the Midwest.”
The Company expects the performance of the two acquired companies to be consistent with prior years, with an estimated $27 million to $29 million in collective net sales for the remainder of fiscal year 2018. These transactions are expected to be immediately accretive to the Company with financial benefits driven by increased scale and expected 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 3,700 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.