Clayton, Dubilier & Rice (CD&R) has acquired a “significant ownership” position in Foundation Building Materials (FBM) from affiliates of American Securities. Following the transaction, American Securities will continue to own a majority stake in FBM.
“We are pleased to welcome CD&R as an investment partner alongside American Securities,” Ruben Mendoza, president and CEO of FBM, said in a prepared statement. “CD&R has a longstanding track record of investing in and growing market-leading building products distribution companies like ours with an approach to value creation that is very much aligned with FBM’s guiding values and operating principles. American Securities has been a trusted partner to FBM, and shares in the broader FBM team’s excitement to have CD&R on board as we deepen our commitments to our FBM colleagues and customers and continue to build a successful business over the long-term.”
As part of the transaction, three CD&R professionals will join FBM’s board of directors. The investment in FBM was completed on Jan. 30, 2024. CD&R is a private investment firm with investments in businesses across the industrial, healthcare, consumer, technology, and financial services sectors.
“FBM is a well-rrun, market-leading business that adds significant value for its customers and is well-positioned for growth,” Tyler Young, principal at CD&R, said. “Working alongside the teams at FBM and American Securities, we will focus on helping the company achieve its full growth potential, broadening and enhancing its industry-leading services and product offerings, and deepening its relationships with customers, employees, vendors, and communities across North America.”
FBM, founded in 2011, operates over 300 locations and serves a customer base of more than 40,000 residential, nonresidential, and speciality contractors and builders. In 2021, FBM was acquired by American Securities and has since grown organically and through investments, including its combination with Beacon’s interior products and insulation businesses.
“We are confident this partnership with CD&R represents a compelling next step in the ongoing evolution of FBM and accelerates the company’s growth course,” Kevin Penn, a managing director for American Securities, said. “In recent years, the company has made significant progress towards achieving key strategic priorities, including investing in a new e-commerce platform and digital application to facilitate enhanced service for customers, and is well-positioned to build on this momentum.”