Foundation Building Materials Announces the Purchase of Certain Assets from Insulation Distributors, Inc.
SANTA ANA, Calif.--(BUSINESS WIRE)--Feb 5, 2020--
Foundation Building Materials, Inc. (“FBM” or the “Company”) (NYSE: FBM), one of the largest specialty distributors of wallboard, suspended ceiling systems, metal framing, and complementary products in North America, announced today that it has purchased two specialty building products branches in Baltimore and Washington, D.C. from Insulation Distributors, Inc. (“IDI”). FBM acquired the suspended ceiling systems, wallboard, metal framing, and commercial insulation product lines of IDI serving the Baltimore and Washington, D.C. markets. The terms of the transaction were not disclosed.
IDI is family-owned and operated, and has helped over 3,000 independent insulation contractors successfully profit and grow their own businesses nationwide. IDI will continue to operate its branch network nationwide.
“The acquisition of IDI’s specialty building products branches expands our geographic footprint to the Baltimore and Washington, D.C. markets and builds our commercial presence in the region,” said Ruben Mendoza, FBM’s President and CEO. “We welcome the teams at both locations to the FBM network.”
The Company expects the two branches’ performance to be consistent with prior years, with an estimated $16 million to $20 million in net sales for the remainder of 2020. This acquisition is expected to be immediately accretive to the Company with financial benefits driven by increased scale and savings.
About Foundation Building Materials
Foundation Building Materials is a specialty distributor of wallboard, suspended ceiling systems, metal framing, and complementary products throughout North America. Based in Santa Ana, California, the Company employs more than 3,500 people and operates over 175 branches across the U.S. and Canada. Learn more at www.fbmsales.com or follow us on LinkedIn, Twitter, Instagram, or Facebook.
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 benefits 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 assumption 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.
View source version on businesswire.com:https://www.businesswire.com/news/home/20200205005424/en/
CONTACT: Investor Relations
Foundation Building Materials
John Moten, IRC, 657-900-3213
VP Investor Relations
Joele Frank, Wilkinson Brimmer Katcher
Jed Repko or Ed Trissel, 212-355-4449
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: INTERIOR DESIGN ARCHITECTURE OTHER CONSTRUCTION & PROPERTY RESIDENTIAL BUILDING & REAL ESTATE COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY
SOURCE: Foundation Building Materials, Inc.
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PUB: 02/05/2020 09:15 AM/DISC: 02/05/2020 09:15 AM