Foundation Building Materials Expands its Footprint in Greater Toronto, Canada with the Acquisition of Builders’ Supplies Limited
TUSTIN, Calif.--(BUSINESS WIRE)--Feb 4, 2019--Foundation Building Materials, Inc. (“FBM” or the “Company”) (NYSE:FBM), one of the largest specialty distributors of wallboard, suspended ceiling systems and metal framing in North America, announced today that it has closed the acquisition of Builders’ Supplies Limited, (“Builders’”). Builders’ is a leading independent distributor of drywall, steel framing, ceiling tile and grid, and other related products. Builders’ has an eighty-five year track record and operates three branches in the Greater Toronto Area. Terms of the transaction were not disclosed.
“We are excited Builders’ will be joining the FBM network. This transaction will expand our geographic footprint into the non-residential downtown Toronto market and enhance our service capabilities to the greater Ontario Province,” said Ruben Mendoza, FBM’s President and Chief Executive Officer.
The Company expects Builders’ performance to be consistent with prior years, with an estimated $20 million to $24 million in net sales for the remainder of 2019. 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 ceilings systems, and metal framing throughout North America. Based in Tustin, California, the Company employs more than 3,400 people and operates more than 170 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 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.
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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: UNITED STATES NORTH AMERICA CANADA CALIFORNIA
INDUSTRY KEYWORD: BUILDING SYSTEMS ARCHITECTURE INTERIOR DESIGN CONSTRUCTION & PROPERTY OTHER CONSTRUCTION & PROPERTY
SOURCE: Foundation Building Materials, Inc.
Copyright Business Wire 2019.
PUB: 02/04/2019 04:15 PM/DISC: 02/04/2019 04:15 PM