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 acquisition of substantially all of the operating assets of American Wal-Board, LLC and related entities (“American Wal-Board”). Financial terms of the transaction were not disclosed.
Founded in 1995, American Wal-Board is an independent distributor of drywall, steel framing, insulation, roofing and fireplace products. Led by a strong management team, American Wal-Board operates one branch in Tennessee and one branch in Mississippi.
“Today’s announcement is another strategic acquisition for FBM,” said Ruben Mendoza, FBM’s Chief Executive Officer. “By adding American Wal-Board, we gain entry into a new market in Mississippi and expand our footprint in Tennessee. FBM’s development team sourced and closed this important addition to our company, which we expect to be fully integrated into our organization within ninety days. We welcome the American Wal-Board team to the Foundation family and look forward to integrating their two branches into our company.”
The Company expects American Wal-Board’s third and fourth quarter performance to be consistent with prior years, contributing an estimated $5 million to $7 million in net sales through December 31, 2017.
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.
Forward-Looking Statements
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 American Wal-Board, the accretive benefit to FBM’s earnings, the expected integration of American Wal-Board and the time frame in which this will occur, and plans regarding American Wal-Board’s 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.
