Private equity firm American Securities LLC, New York, and specialty building products distributor Foundation Building Materials Inc. (NYSE: FBM), Santa Ana, California, on Friday announced the closing of American Securities’ acquisition of FBM.
American Securities in November agreed to acquire the distributor for $19.25 per share, or $1.4 billion, including outstanding debt.
The firm bought the company from an affiliate of Lone Star Funds, another private equity firm, which had acquired FBM in 2015 and maintained a majority ownership since the company’s initial public offering in 2017. FBM is now a privately held company.
“Under private ownership, FBM will have greater flexibility to intensify its focus on serving customers across the U.S. and Canada,” said Ruben Mendoza, president and CEO of FBM.
“We have long admired FBM’s talented team members and its track record of market leadership and growth,” said Kevin Penn, a managing director of American Securities. “We are excited to work alongside management to help the company execute its strategic plan and continue delivering high-quality products and service to its customers.”