Foundation Building Materials, Inc. Expands Footprint in the Great Plains with the Acquisition of Agan Drywall Supply, Inc. &...
October 01 2018 - 04:30PM
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 acquired Agan Drywall Supply,
Inc., Agan Drywall Supply Rapid City, Inc., and Agan Tri-State
Drywall Supply, Inc. (collectively, “Agan”). Agan is a leading
independent distributor of drywall, steel framing, Sto coatings and
EIFS, stucco, stone veneers, insulation and complementary products.
Agan has a 43-year track record of success and operates three
branches in Sioux Falls and Rapid City, South Dakota, and Sioux
City, Iowa. Terms of the transaction were not disclosed.
“With the closing of this transaction, FBM will now be able to
offer our full complement of products in three markets in the Great
Plains States,” said Ruben Mendoza, FBM’s Chief Executive Officer.
“Agan has a strong and successful history, largely created by the
talent of their management and employees and long-standing customer
relationships. Senior management from the acquired companies will
continue with FBM and be leaders in the region.”
The Company expects Agan’s performance to be consistent with
prior years, contributing an estimated $5.0-$7.0 million to net
sales for the remainder of 2018. 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 ceiling systems, and mechanical insulation
throughout North America. Based in Tustin, California, the company
employs more than 3,000 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 the acquired companies, the
accretive benefit 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 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20181001005976/en/
Foundation Building Materials, Inc.Investor Relations:John
Moten, 657-900-3213VP Investor
Relationsjohn.moten@fbmsales.comorMedia Relations:Joele Frank,
Wilkinson Brimmer KatcherJed Repko or Ed Trissel, 212-355-4449
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