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 Ciesco, Inc. and Commercial Specialty Supply
LLC (collectively, “Ciesco”). Ciesco is a leading independent
distributor of drywall, steel framing, ceiling products, insulation and
complementary products. Ciesco has a 31-year track record of success and
operates six branches servicing Central and Eastern Pennsylvania,
Maryland, Delaware, Southern New Jersey, Washington, D.C. and Northern
Virginia. Terms of the transaction were not disclosed.
“We are excited Ciesco will be joining the FBM network. This transaction
will significantly expand our drywall, metal framing and complementary
products offerings to customers in the region, and build a deeper market
presence in the Northeast and Mid-Atlantic markets,” said Ruben Mendoza,
FBM’s Chief Executive Officer.
The Company expects Ciesco’s performance to be consistent with prior
years and is expected to contribute $24.0 million to $27.0 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
3,700 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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