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 acquired Ciesco, Inc. and Commercial Specialty Supply LLC (collectively, “Ciesco”). Ciesco is a leading independent distributor of drywall, steel framing, ceiling products, insulation and complementary products. Ciesco has a 31-year track record of success and operates six branches servicing Central and Eastern Pennsylvania, Maryland, Delaware, Southern New Jersey, Washington, D.C. and Northern Virginia. Terms of the transaction were not disclosed.
“We are excited Ciesco will be joining the FBM network. This transaction will significantly expand our drywall, metal framing and complementary products offerings to customers in the region, and build a deeper market presence in the Northeast and Mid-Atlantic markets,” said Ruben Mendoza, FBM’s Chief Executive Officer.
The Company expects Ciesco’s performance to be consistent with prior years and is expected to contribute $24.0 million to $27.0 million to net sales for the remainder of 2018. This transaction is 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, 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.