American Securities and CD&R Successfully Close $8.8 Billion Sale of Foundation Building Materials

$8.8 Billion Sale of Foundation Building Materials: What It Means for the Industry

In a landmark deal announced on October 9, 2025, American Securities LLC and CD&R have successfully completed the sale of Foundation Building Materials, Inc. (FBM) to Lowe's Companies, Inc. This agreement, valued at approximately $8.8 billion, marks a significant strategic move in the construction materials sector, particularly in the distribution of building products.

Overview of FBM

Founded in 2011 and headquartered in Santa Ana, California, FBM has established itself as a prominent distributor of interior building products in North America. The company offers a comprehensive range of products, including drywall, metal framing, ceiling systems, commercial doors, and hardware, in addition to insulation and complementary products. With a network extending across over 370 locations in the United States and Canada, FBM serves a diverse clientele, including both residential and commercial professionals engaged in new construction as well as repair and remodeling projects.

The acquisition aligns with Lowe's Total Home strategy, which aims to provide a full suite of products and services that cater to the needs of both professionals and consumers, facilitating a comprehensive solution for home improvement demands.

Previous Growth Under American Securities and CD&R

Over the past four and a half years, under the ownership of American Securities and CD&R, FBM has seen unprecedented growth. This has been reflected in staggering figures, with the company achieving an annual revenue growth of 27% and an EBITDA growth of 31%. The strategic vision implemented by these firms enabled FBM to enhance its market position and expand its operations significantly.

Kevin Penn, a partner at American Securities, expressed gratitude for the collaborative efforts of Ruben Mendoza, the CEO of FBM, and his team, stating, “We want to thank Ruben Mendoza and the entire Foundation Building Materials team for their exceptional partnership over the last four and a half years. We are excited to see the company enter its next chapter under Lowe's ownership.”

Future Implications for FBM

With Lowe’s acquisition, FBM is poised to build upon its legacy and further expand its impact within the industry. The merging of FBM with Lowe's existing operations is expected to foster growth opportunities and reinforce supplier relationships that have been cultivated over the years. As Tyler Young from CD&R noted, “We believe FBM will be an outstanding platform in partnership with Lowe's to serve pro customers.”

This acquisition not only consolidates Lowe's position in the marketplace but also adds a competitive edge by integrating FBM's extensive product offerings into its operations, thus enhancing its ability to cater to professional builders and contractors more effectively.

Insights into American Securities and CD&R

American Securities, headquartered in New York with an office in Shanghai, is a leading private equity firm focused on investing in market-leading companies across North America. With more than $23 billion under management, American Securities is recognized for its strategic investment approach, aiming to optimize growth and operational efficiency within its portfolio companies.

CD&R, on the other hand, has been delivering strong returns through investment in sustainable businesses since its inception in 1978. The firm emphasizes long-term value creation through strong management partnerships and operational improvements, aiming to foster robust business growth.

Conclusion

The sale of Foundation Building Materials marks a pivotal moment in the construction materials distribution landscape, reinforcing the importance of strategic partnerships and investments in achieving sustained growth. As this new chapter unfolds for FBM under Lowe's umbrella, stakeholders will be keenly watching how these changes will shape the future of the industry and influence the dynamics of building materials distribution.