Foundation Building Materials, Building Products Distribution Company Owned By American Securities and CD&R, To Be Sold To Lowe's In $8.8 Billion Transaction

NEW YORK, Aug. 20, 2025 /PRNewswire/ -- American Securities LLC ("American Securities") and CD&R today announced they have entered into a definitive agreement to sell Foundation Building Materials, Inc. ("FBM" or the "Company") to Lowe's Companies, Inc. ("Lowe's") (NYSE: LOW) for $8.8 billion.

FBM is a leading North American distributor of interior building products, including drywall, metal framing, ceiling systems, commercial doors and hardware, insulation and complementary products serving large residential and commercial professionals in both new construction and repair and remodel applications. Since 2011, FBM has grown organically and inorganically to become an industry leader, with a network of over 370 locations in the United States and Canada serving 40,000 Pro customers.

Under the ownership of American Securities and CD&R, FBM has experienced a period of exceptional growth resulting in 27% per annum revenue growth and 31% per annum EBITDA growth. This momentum has been driven by both organic expansion and strategic transactions, including the acquisitions of Beacon Roofing Supply's interior products business, Marjam Supply Company, Unified Door & Hardware, and REW Materials. These acquisitions have improved the Company's competitiveness, broadened its product and service portfolio, and expanded its scope across key regions in North America. In addition, FBM has advanced long-term strategic goals, including launching a new e-commerce platform and digital application designed to deliver enhanced service for its customers, and investing to expand its commercial capabilities.

Ruben Mendoza, CEO of FBM, said: "Working alongside American Securities and CD&R has been incredible. With their support, we've been able to accelerate growth, expand our capabilities, and improve our position, all while staying true to our values and culture. I am immensely grateful for what our team has accomplished and am excited about the opportunities ahead as we join forces with Lowe's."

Kevin Penn, Partner at American Securities, added: "Over the last four and a half years, we have been privileged to work with an extraordinary management team, building on a relationship with Ruben Mendoza that goes back years before our investment. We're proud to have supported FBM in achieving remarkable growth, transforming the business through strategic M&A, the opening of new markets, and innovative e-commerce initiatives. This transaction is a testament to the value of true partnership with an outstanding team."

"Our team was pleased to partner with Ruben Mendoza and American Securities to help FBM unlock its full potential and establish new avenues for growth," said John Stegeman, Operating Advisor to CD&R funds and Chairman of FBM. "Over the course of our partnership, FBM has strengthened its capabilities, invested in organic growth initiatives and enhanced its best-in-class customer value proposition, which will enable long-term, sustained growth."

"Over the course of our investment, our shared vision — to position FBM as a leading, reliable partner to customers across North America through unmatched service and operational excellence — has been brought to life through the management team's ability to execute and their passion for the business," commented Aaron Maeng, Partner at American Securities. "Together, we have not only achieved impressive results, but also built a resilient, customer-focused business ready to seize future opportunities."

"When we began our collaboration with FBM, we were excited by the strength of the team, long-term track record of performance, best-in-class customer feedback and the strategic value of the business," said Tyler Young, Principal at CD&R. "Over the past 18 months, FBM has established new avenues for growth through strategic acquisitions and a compelling set of well-resourced organic growth initiatives. We are confident FBM is well-positioned for continued success in its next chapter as part of Lowe's."

The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals. RBC Capital Markets served as exclusive financial advisor and Weil, Gotshal & Manges LLP served as legal counsel to FBM, American Securities, and CD&R.

About FBM
Founded in 2011 and headquartered in Santa Ana, California, FBM is an industry-leading building materials and construction products distribution company. With over 370 locations across the U.S. and Canada, FBM has an expansive North American reach with a mission to serve the changing needs of the professional construction trades. For more information, visit www.fbmsales.com.

About American Securities
Based in New York with an office in Shanghai, American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $200 million to $2 billion. American Securities and its affiliates have more than $23 billion under management. For more information, visit www.american-securities.com.

About CD&R
Founded in 1978, CD&R is a leading private investment firm with a strategy of generating strong investment returns by building more robust and sustainable businesses through the combination of skilled investment experience and deep operating capabilities. In partnership with the management teams of its portfolio companies, CD&R takes a long-term view of value creation and emphasizes positive stewardship and impact. The firm invests in businesses that span a broad range of industries, including industrial, healthcare, consumer, technology and financial services end markets. CD&R is privately owned by its partners and has offices in New York and London. For more information, please visit www.cdr.com and follow the firm's activities through LinkedIn and @CDRBuilds on X/Twitter.

Contacts
Prosek Partners for American Securities
Joshua Rosen / Devin Shorey
[email protected]

CD&R
Jon Selib
[email protected]

SOURCE American Securities LLC